The Fed is poised to hike the benchmark interest rate in two weeks after almost a decade, oil prices are hitting fresh lows on supply glut and overvaluation concerns over the U.S. market are doing rounds. Together, these aren’t creating the best backdrop to invest in equity markets. 

Moreover, slowdown in China and the Euro zone, recession in several emerging markets and a technical recession in the Japanese economy continue to cast a shadow over global growth. Plus, broader commodities are slouching, putting mining companies at risk.
 
The sought-after investment broker Goldman Sachs expects weakness in the market next year with the S&P 500 predicted to close out 2016 at 2,100. The U.S. index presently trades at 2,088, implying almost no change in gains in the coming 13 months (read: Goldman Raises Yellow Flag on 2016: ETFs to Buy).
 
Among the top ETFs, investors have seen the S&P 500-based SPY adding about 1.4% and Dow-based DIA losing about 0.3%. Only tech-laden Nasdaq-based QQQ has advanced 11% so far this year (as of December 7, 2015).
 
Higher interest rates post lift-off will result in a stronger greenback which in turn curtailed the profit outlook of the companies. In Q3, earnings from the S&P 500 were down 2.4% while revenues declined 3.9%. As per Zacks Earnings Trends, earnings for Q4 are projected to be down 6.5% on 3.4% lower revenues.
 
Though the majority of the Fed lift-off move is priced in at the current level and the investing world is expecting a slow and small rate hike trajectory as the U.S. economy is yet to attain the central bank’s inflation goal, a certain level of initial shocks are inevitable once the step is taken. This might lead many investors to seek refuge in low risk products rather than sticking to highly volatile options and enduring the economic data and Fed-infused storm.
 
In such a , the low-volatility products could be intriguing choices for those who want to stay invested in domestic equities, but like the idea of focusing on minimum volatility. Low volatility ETFs generally tend to offer positive risk-adjusted gains, though not huge.
 
Investors should note that in down years like 2015, low volatility products outperform the traditional benchmark. Over the long term as well, low risk products are seen to surpass the high-risk securities.
 
Below we highlight five low-volatility ETFs and offer key features of each so that you can find out which is best suited to look after your portfolio (read: Which Low Volatility ETFs Will Protect Your Portfolio?)
 
PowerShares S&P 500 Low Volatility ETF (SPLV)

This $67.1-million low volatility ETF consists of the 100 stocks from the S&P 500 Index with the lowest realized volatility over the last one year.The fund is heavy on financials (28.2%) followed by consumer staples (21.3%), industrials (16.7%) and health care (12.4%). The fund charges 25 bps in fees. SPLV is up over 2.2% so far this year (as of December 7, 2015) and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
 
S&P MidCap Low Volatility Portfolio (XMLV)

This overlooked ETF looks to follow the S&P MidCap 400 Low Volatility Index. The product invests about $118.4 million in assets in 80 stocks. From a sector look, Financials takes half of the portfolio followed by about 11.26% of assets invested in Industrials and 10.54% in Utilities.

The portfolio has minimal company-specific concentration risk with no product accounting for more than 1.71%. The product charges about 25 bps in fees. It is up 5.4% so far this year.
 
iShares MSCI USA Min Volatility (USMV)
 
The fund measures the performance of equity securities in the top 85% by market capitalization of U.S. equities that have lower absolute volatility. The fund has garnered an asset base of $6.85 billion. This fund is home to 171 securities in total and assigns double-digit allocation to the Financials (21.2%), Health Care (19.6%), Information Technology (15.71%) and Consumer Staples (14.43%) sectors.

The fund also has an edge over its peers when it comes to expenses as it charges a fee of just 15 basis points annually while it yields about 1.89%. The fund has delivered a return of over 4% so far this year (read: Winning ETF Strategies for Q4).

PowerShares S&P 500 ex-Rate Sensitive Low Volatility Portfolio (XRLV)

This ETF has already amassed over $113 million in assets. This product offers investors dual benefits. First, it is targeted at low-risk stocks and then it is insulated from the impending Fed rate hike as it considers stocks which are less rate sensitive (read: 3 ETFs for Rising Interest Rates).

Holding 100 stocks in its basket, the fund dose not put more than 1.29% of the total in a single security. It is heavy on Financials (28.2%) and Industrials (21.5%). The fund charges 25 bps in fees. It has returned 3.2% in the year-to-date frame (as of December 7, 2015).

SPDR Russell 1000 Low Volatility Focus ETF (ONEV)

This brand-new ETF gives exposure to the low volatility investing in large cap equity securities. The 424-stock fund is heavy on financial services (20.2%) trailed by consumer discretionary (16.62%), producer durables (15.98%) and consumer staples (12.2%). The fund charges 20 bps in fees.