iShares MSCI USA Min Vol Factor ETF

USMV

Market cap $23.7B

History shows that midterm election years aren't always great years for the S&P 500.

China's reported move to curb U.S. Treasury exposure lifts yields and raises fiscal concerns. Here are ETF strategies investors can consider now.

The broader market is sending a clear signal as speculative assets like cryptocurrencies have taken a dive.

USMV and other low-volatility ETFs gain appeal as an AI-driven tech rout wipes $1T, spikes VIX, and fuels rotation into staples and value sectors.

The iShares MSCI USA Min Vol Factor ETF (USMV) was launched on October 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.

In challenging markets, it's best to have some exposure to investments designed to curb portfolio risk. On the equity side, many choose a low volatility ETF for this purpose.

The latest jobs report has put the ETF market into a dilemma. With the unemployment rate rising to 4.4%, the highest level since October 2021, and December rate-cut odds shrinking to 28%, trimming risk and loading up on steadier, low-beta staples may prove to be a prudent move.

iShares MSCI USA Min Vol Factor ETF (USMV) delivered a 30% total return since November 2023, underperforming the S&P 500 but outperforming similar low-volatility funds. USMV's sector tilts and top holdings maintain a defensive profile which should help reduce realized volatility compared to the broader market. The case for defensive equity market exposure has strengthened due to higher market valuations and concentration in broad market indexes.

The iShares MSCI USA Min Vol Factor ETF (USMV) was launched on October 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.

With all the AI bubble headlines out there, it's easy to conclude that the great bull run will end in tears and perhaps irrecoverable losses for those who've chased the hottest AI names in the market.