In most markets, low volatility ETFs have performed as advertised, outperforming the traditional cap based indices when markets fall. This ETF has broken that trend, falling 5.3% in Canadian dollar terms while the MSCI EAFE Index was down 3.9% during the same period. Much of the underperformance can be attributed to its healthcare and technology names, many of which struggled in the past few months. Another concern is that like other low volatility offerings, its valuation numbers are very stretched relative to the broader market and other international equity ETFs, yet its holdings have a lower level of forward looking growth expectations. Given that, I am expecting to see underperformance over the near to medium term while valuation levels catch up with the underlying fundamentals.