(Bloomberg) -- The low volatility ETF craze has little to do with investors seeking less volatility.

Instead, the billions of dollars flowing into ETFs that track stocks exhibiting the least amount of volatility, is a classic case of performance chasing. Like little kids playing soccer, many investors follow the outperformance ball, so to speak, wherever it goes. It happens with stocks, bonds, active mutual funds, hedge funds, and increasingly with ETFs. Right now, the soccer ball is in the low-volatility part of the field, where nearly all low-vol ETFs are outperforming their respective markets — be it large-caps, small-caps or international equities.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.