USMV
iShares MSCI USA Min Vol Factor ETF
📎 Investment Objective
The iShares MSCI USA Min Vol Factor ETF (USMV) seeks to track the investment results of an index composed of US equities that have lower volatility characteristics relative to the broader US equity market.
Overview
ETF tracking iShares MSCI USA Min Vol Factor ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The iShares MSCI USA Min Vol Factor ETF (USMV) seeks to track the investment results of an index composed of US equities that have lower volatility characteristics relative to the broader US equity market.
🎯 Investment Strategy
The fund seeks to provide exposure to US stocks with lower historical volatility, with the goal of delivering lower risk than the broader market. The portfolio is constructed using a rules-based process to select and weight stocks based on their expected volatility.
✨ Key Features
- Focuses on US equities with lower historical volatility
- Aims to provide exposure to the US equity market with reduced risk
- Utilizes a rules-based process to select and weight portfolio holdings
- Relatively low expense ratio compared to many actively managed funds
⚠️ Primary Risks
- Market risk - The fund's performance is subject to the overall conditions of the US equity market
- Concentration risk - The fund's focus on low-volatility stocks may result in less diversification
- Tracking error risk - The fund may not perfectly track its target index
- Liquidity risk - Lower trading volume in some portfolio holdings could impact liquidity
👤 Best For
This ETF may be suitable for investors seeking exposure to the US equity market with lower volatility and risk than the broader market. It could be a core holding for investors with a moderate risk tolerance who are looking to reduce portfolio volatility.
Top Holdings
| Rank | Ticker | Name | Weight | Sector |
|---|---|---|---|---|
| 1 | COR | CENCORA INC | 1.79% | Health Care |
| 2 | MCK | MCKESSON CORP | 1.78% | Health Care |
| 3 | IBM | INTERNATIONAL BUSINESS MACHINES CO | 1.73% | Information Technology |
| 4 | CSCO | CISCO SYSTEMS INC | 1.65% | Information Technology |
| 5 | XOM | EXXON MOBIL CORP | 1.64% | Energy |
| 6 | JNJ | JOHNSON & JOHNSON | 1.57% | Health Care |
| 7 | APH | AMPHENOL CORP CLASS A | 1.57% | Information Technology |
| 8 | BRKB | BERKSHIRE HATHAWAY INC CLASS B | 1.52% | Financials |
| 9 | CB | CHUBB LTD | 1.51% | Financials |
| 10 | DUK | DUKE ENERGY CORP | 1.47% | Utilities |
| 11 | SO | SOUTHERN | 1.43% | Utilities |
| 12 | MSFT | MICROSOFT CORP | 1.43% | Information Technology |
| 13 | MRK | MERCK & CO INC | 1.41% | Health Care |
| 14 | NVDA | NVIDIA CORP | 1.39% | Information Technology |
| 15 | NOW | SERVICENOW INC | 1.33% | Information Technology |
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