Low-Volatility ETFs Are Anything But Amid S&P 500 Tumble: Chart

(Bloomberg) -- The biggest equity decline since Britain seceded from the European Union is being most acutely felt in exchange-traded funds designed to minimize volatility. The iShares Edge MSCI Min Vol USA ETF was down 1.6 percent at 12:30 p.m. in New York and the PowerShares S&P 500 Low Volatility Portfolio slid 1.8 percent, compared with the S&P 500's 1.4 percent retreat. Both were punished as central bank hawkish comments sent bond yields rising quickly from records reached earlier this year.

To contact the reporter on this story: Dani Burger in New York at dburger7@bloomberg.net. To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net.