Low-volatility ETFs are proving their worth during the current market downturn, outperforming broad benchmarks like the S&P 500. Funds like iShares USMV and Invesco SPLV are both up over 3% year-to-date, even as the Vanguard S&P 500 ETF (VOO) is down nearly 5%. 

Despite their performance, these ETFs haven't attracted significant inflows, overshadowed by trendier buffered and defined-outcome products that rely on complex options strategies. Low-volatility ETFs, by contrast, use a simpler factor-investing approach and tend to come with lower fees, making them more cost-efficient. 

While they can underperform during strong bull markets, their resilience shines when equities struggle, as seen during major drawdowns in 2022 and 2018. 

Finsum: Advisors still value them for clients seeking steadier returns in uncertain conditions, especially as bonds show increasing volatility themselves.