iShares MSCI USA Min Vol Factor ETF

USMV

Market cap $23.5B

Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the iShares MSCI USA Min Vol Factor ETF (USMV), a passively managed exchange traded fund launched on October 18, 2011.

Both ACWV and USMV are rated Buy, but I prefer ACWV for its global diversification and defensive qualities in volatile markets. ACWV offers higher dividend yield, lower valuation metrics, and meaningful emerging market exposure, enhancing risk-adjusted returns in uncertain environments. USMV has outperformed due to its tech-heavy U.S. focus, but is more aggressive and less diversified, making it riskier if market conditions worsen.

USMV does achieve lower volatility, or variance, or however you measure variation in the ETF's price, but returns lag possibly disproportionately behind broader market ETFs like IVV over five years. Volatility isn't the same as risk, since a strong positive performance gets recognised as volatility when risk is a negative outcome. But even conceptually, there are plenty of reasons to disagree that risk and volatility are equivalent or even meaningfully associated.

Market turbulence has become a hallmark of today's investing landscape. Against the shifting sands of monetary policy and elevated macro uncertainty, investors are increasingly seeking strategies that offer stability without sacrificing long-term returns.

If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the iShares MSCI USA Min Vol Factor ETF (USMV), a passively managed exchange traded fund launched on 10/18/2011.

Markets hit new record with bets on a "Goldilocks" economy, but volatility persists. AI and international ETFs like QQQ, IVES and EZU could be good bets for 2H.

Diversify your ETF portfolio for a smoother ride.

With economic uncertainty still clouding the markets, investors are likely looking into defensive strategies to protect their portfolios.

USMV is a well-diversified, low-volatility ETF with a 0.15% expense ratio and $24.43 billion in assets under management. USMV is unique for its 5% active sector risk constraint, ensuring high-growth sectors like Technology and Consumer Discretionary don't get ignored. This allows for solid participation in bull markets. USMV has proven reliable in market downturns since its launch in October 2011, though not as good as SPLV, a single-factor fund with relatively poor quality features and inferior returns.

The iShares MSCI USA Min Vol Factor ETF (USMV) was launched on 10/18/2011, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.