Invesco S&P MidCap Low Volatility ETF

XMLV

Market cap $791M

During VettaFi's 2025 Exchange conference, asset managers and market experts across the globe gathered to discuss the latest strategies to navigate the market. The VettaFi team caught up with Nick Kalivas, head of factor and core equity ETF strategy at Invesco, to break down which factor strategies could prove advantageous down the line.

XMLV offers consistent exposure to the 20% least-volatile stocks in the S&P MidCap 400 Index. Its expense ratio is 0.25% and the ETF has nearly $800 million in assets. The main benefit of the low-volatile strategy is to outperform in drawdowns. My analysis reveals that since its launch in 2013, it's accomplished that goal regularly. Unlike the large-cap segment, less-volatile mid-caps don't sacrifice nearly as much quality compared to their benchmark. In addition, XMLV's value and growth metrics are solid.

Wall Street falters at the start of September, raising the appeal for low-volatility products.

Low-volatility ETFs have the potential to outpace the broader market in bearish conditions or in an uncertain environment, providing significant protection to the portfolio.

It's been a volatile few years for the stock market, and that has investors sniffing out low-volatility ETFs. Just understand their strengths and their limitations.