Bullish case for Big Tech during a historically volatile month

September lives up to its reputation as a volatile month, and this creates more challenges for the Big Tech trade. But a low-volatility ETF is still betting big on it.

Alliance Bernstein is behind the AB US Low Volatility Equity ETF. According to FactSet, his top three holdings include megacap winners Microsoft, Apple and Alphabet.

“Technology touches everything we do in most aspects of our lives, but there are other industries at play,” Noel Archard, the firm’s global head of ETFs and investor solutions, told CNBC’s “ETF Edge” this week . “So we continue to see great interest in large-scale investment.”

For comparison, FactSet lists the top holdings for Invesco Low Volatility ETF as stocks that are traditionally more stable: Berkshire-Hathaway, Coca cola and Visa.

Archard notes that there is still a place for historically less volatile stocks such as basic consumer products and Finance. He sees them as “bumpers” that can help mitigate risk.

For example, FactSet shows that Alliance Bernstein’s Low Volatility ETF includes name exposure, including Procter & Gamble and Fiserv.

“You kind of forget about volatility until it comes up and then all of a sudden it’s very front and center,” Archard said.

The AB US Low Volatility ETF was up 16% this year through Wednesday’s close.

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