How to Protect Your Portfolio from Election Volatility

As the US Presidential Elections approach, investors may want to consider adding some protection into their portfolio to defend against stock market volatility 

Briegel Leitao 26 October, 2020 | 8:30AM

protection

With just a week to go before the US presidential elections, it may be worth considering  how investments can help to minimise volatility. A number of exchange-traded funds (ETFs) have this remit and are a valuable tool in a portfolio for times of uncertainty.

US presidential elections are almost always a source of volatility for stock markets. Adding to the usual tumult this time around are uncertainties surrounding postal ballots, which are set to surge this year as voters stay home amid Covid-19 concerns. A close result could trigger recounts or even an arbitration in court, which could leave the country in limbo and set the stock market spiralling.

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About Author

Briegel Leitao  is Associate Analyst of Passive Strategies at Morningstar UK

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