Average Daily Volume
2.94M
Fund Overview
The iShares MSCI USA Min Vol Factor ETF (USMV) is designed to track the investment results of the MSCI USA Minimum Volatility (USD) Index. This index consists of U.S. equities that exhibit lower volatility characteristics relative to the broader U.S. equity market. USMV provides investors with exposure to large- and mid-cap U.S. stocks while aiming to reduce overall portfolio risk. The fund is popular among investors seeking a defensive equity strategy that may help mitigate downside risk during market downturns without completely sacrificing growth potential. Since its inception in 2011, USMV has grown to become one of the largest and most liquid minimum volatility ETFs available.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
Yes
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 1.41 %
- Currency Hedged
-
No
- Portfolio Turnover
-
24 %
- Dividend Date
-
Why Invest in the USMV ETF?
Potential Benefits
- Lower volatility than broad market ETFs, potentially reducing portfolio drawdowns during market declines.
- Diversified exposure to U.S. large- and mid-cap stocks with historically defensive characteristics.
- Systematic approach to selecting stocks based on volatility metrics rather than subjective stock picking.
- Competitive expense ratio (0.15%) compared to many actively managed low-volatility strategies.
- Strong liquidity with tight bid-ask spreads, making it easy to trade.
- Has historically shown resilience during periods of market stress while still participating in upside.
Potential Risks
- May underperform in strong bull markets when high-beta stocks are leading.
- Not immune to market declines, though typically declines less than broad market indices.
- Concentration in certain sectors (like utilities and consumer staples) that are traditionally less volatile.
- Factor investing risks - the low volatility factor may not work in all market environments.
- Tracking error risk as the fund may not perfectly replicate its index.
- Dividend yields may be lower than some value-oriented ETFs.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.9%
|
+3.0%
|
-4.8%
|
+2.0%
|
+2.1%
|
+0.2%
|
+1.5%
|
+3.7%
|
-3.7%
|
+0.8%
|
-
|
-
|
| 2025 |
+3.6%
|
+2.8%
|
-0.6%
|
-1.2%
|
+1.0%
|
+0.7%
|
-1.3%
|
+1.8%
|
+1.3%
|
-2.1%
|
+2.3%
|
-0.8%
|
| 2024 |
+2.2%
|
+2.1%
|
+3.1%
|
-3.7%
|
+2.9%
|
+1.8%
|
+3.7%
|
+4.9%
|
+0.4%
|
-1.4%
|
+5.1%
|
-5.7%
|
| 2023 |
+1.5%
|
-3.5%
|
+3.4%
|
+1.5%
|
-3.2%
|
+4.5%
|
+1.4%
|
-0.6%
|
-2.8%
|
-0.9%
|
+6.4%
|
+2.8%
|
| 2022 |
-6.0%
|
-3.1%
|
+5.6%
|
-5.3%
|
0.0%
|
-4.1%
|
+5.1%
|
-3.2%
|
-7.1%
|
+7.7%
|
+5.7%
|
-3.8%
|
| 2021 |
-2.7%
|
-0.4%
|
+5.6%
|
+4.0%
|
+0.9%
|
+1.7%
|
+3.5%
|
+1.9%
|
-5.0%
|
+5.5%
|
-2.1%
|
+6.8%
|
| 2020 |
+2.3%
|
-8.7%
|
-11.3%
|
+9.4%
|
+4.3%
|
-1.1%
|
+4.6%
|
+2.7%
|
-1.7%
|
-3.2%
|
+8.1%
|
+2.3%
|
| 2019 |
+5.6%
|
+3.8%
|
+2.7%
|
+2.2%
|
-1.6%
|
+5.0%
|
+1.7%
|
+1.6%
|
+1.0%
|
-0.2%
|
+1.4%
|
+1.8%
|
| 2018 |
+3.5%
|
-4.2%
|
-0.3%
|
+0.2%
|
+1.0%
|
+1.7%
|
+3.3%
|
+3.1%
|
+1.2%
|
-4.0%
|
+3.2%
|
-6.7%
|
| 2017 |
+1.3%
|
+4.5%
|
+0.1%
|
+1.4%
|
+2.0%
|
-0.3%
|
+2.0%
|
+0.8%
|
+0.5%
|
+1.9%
|
+3.1%
|
+0.2%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
RSG
|
REPUBLIC SERVICES INC |
1.7 % |
|
BRK-B
|
BERKSHIRE HATHAWAY INC CLASS B |
1.7 % |
|
TMUS
|
T-MOBILE US INC |
1.7 % |
|
DUK
|
DUKE ENERGY CORP |
1.6 % |
|
PGR
|
PROGRESSIVE CORP |
1.6 % |
|
WCN
|
WASTE CONNECTIONS INC |
1.6 % |
|
WMT
|
WALMART INC |
1.6 % |
|
MCK
|
MCKESSON CORP |
1.5 % |
|
CB
|
CHUBB LTD |
1.5 % |
|
IBM
|
INTERNATIONAL BUSINESS MACHINES CORP |
1.5 % |
Top 10 holdings shown, out of 182 total holdings.
Related ETFs: USMV vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
USMV tracks the MSCI USA Minimum Volatility Index, which selects and weights U.S. stocks to create a portfolio with the lowest absolute volatility based on historical return data. The index methodology considers stock correlations and optimizes sector constraints to avoid excessive concentration. The fund holds about 150-200 stocks primarily from large- and mid-cap U.S. companies. The portfolio is rebalanced quarterly and when the underlying index is reconstituted (typically in May and November). Unlike some factor ETFs that use equal-weighting, USMV's holdings are weighted based on the optimization process to minimize volatility.
Frequently Asked Questions
How often does USMV rebalance its holdings?
USMV rebalances quarterly and undergoes full index reconstitution twice per year (typically in May and November) to maintain its low volatility characteristics.
Does USMV pay dividends?
Yes, USMV pays quarterly dividends derived from the underlying stocks in its portfolio, though yields tend to be modest as the fund doesn't specifically target high-dividend stocks.
How does USMV differ from the standard S&P 500 ETF?
USMV selects stocks specifically for their low volatility characteristics rather than holding the broad market like an S&P 500 ETF, typically resulting in lower risk but potentially less upside in strong bull markets.
What sectors does USMV typically overweight?
USMV often has higher allocations to traditionally defensive sectors like utilities, consumer staples, and healthcare which tend to exhibit lower volatility.
Is USMV suitable as a core holding in a portfolio?
Many investors use USMV as a core holding, particularly those with lower risk tolerance, though some prefer to use it as a complement to broader market ETFs for volatility reduction.
Industry Overview
The USMV ETF operates in the growing factor investing space, specifically focusing on the low volatility factor. Minimum volatility strategies have gained popularity among investors seeking equity exposure with potentially lower risk characteristics. The financial industry has increasingly recognized that lower volatility stocks have historically delivered competitive risk-adjusted returns over long periods. USMV provides access to this investment approach through a transparent, rules-based methodology tied to MSCI's minimum volatility index construction. The ETF appeals to both institutional and retail investors looking to dampen portfolio volatility while maintaining U.S. equity exposure.
Alternative Comparison
Compared to SPLV (Invesco S&P 500 Low Volatility ETF), USMV offers broader market exposure beyond just S&P 500 constituents and uses a more sophisticated optimization approach rather than simply selecting the lowest volatility stocks. Against EFAV (iShares MSCI EAFE Min Vol Factor ETF), USMV provides purely U.S. exposure rather than international developed markets. USMV's 0.15% expense ratio is competitive with most peers in the minimum volatility category, though some competing products like SPLV charge slightly less (0.13%). Unlike some smart beta ETFs that focus on single factors like value or growth, USMV specifically targets the volatility factor while maintaining diversified sector exposure.
Issuer Overview
USMV is issued by iShares, the ETF arm of BlackRock, the world's largest asset manager. iShares is a leader in factor-based ETFs with over $2 trillion in global ETF assets under management. The firm has extensive experience in index construction and ETF management, with particular strength in smart beta and factor strategies. iShares' scale allows it to offer competitive pricing and tight tracking to its indices across its product lineup.
Conclusion
USMV represents a compelling option for investors seeking to reduce portfolio volatility while maintaining exposure to U.S. equities. Its systematic approach to selecting lower volatility stocks has historically provided downside protection while still allowing participation in market gains. While no strategy works in all market conditions, USMV's focus on the minimum volatility factor, combined with iShares' strong ETF management capabilities, makes it a core holding for many risk-conscious investors. The fund's liquidity and reasonable expense ratio further enhance its appeal for both institutional and individual investors.
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