Should iShares MSCI USA Min Vol Factor ETF (USMV) Be on Your Investing Radar?

Launched on 10/18/2011, the iShares MSCI USA Min Vol Factor ETF (USMV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.The fund is sponsored by Blackrock. It has amassed assets over $23.69 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.Why Large Cap BlendLarge cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.It has a 12-month trailing dividend yield of 1.59%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Information Technology sector--about 25.30% of the portfolio. Financials and Healthcare round out the top three.Looking at individual holdings, Walmart Inc (WMT) accounts for about 1.74% of total assets, followed by International Business Machines Co (IBM) and Cisco Systems Inc (CSCO).The top 10 holdings account for about 15.36% of total assets under management.Performance and RiskUSMV seeks to match the performance of the MSCI USA Minimum Volatility Index before fees and expenses. The MSCI USA Minimum Volatility (USD) Index is composed of U.S. equities that, in the aggregate, have lower volatility characteristics relative to the broader U.S. equity market.The ETF has added about 5.52% so far this year and was up about 16.97% in the last one year (as of 03/06/2025). In the past 52-week period, it has traded between $79.92 and $94.57.The ETF has a beta of 0.76 and standard deviation of 12.63% for the trailing three-year period, making it a medium risk choice in the space. With about 187 holdings, it effectively diversifies company-specific risk.AlternativesIShares MSCI USA Min Vol Factor ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, USMV is an outstanding option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.The Vanguard S&P 500 ETF (VOO) and the SPDR S&P 500 ETF (SPY) track a similar index. While Vanguard S&P 500 ETF has $602.87 billion in assets, SPDR S&P 500 ETF has $613.75 billion. VOO has an expense ratio of 0.03% and SPY charges 0.09%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares MSCI USA Min Vol Factor ETF (USMV): ETF Research Reports International Business Machines Corporation (IBM): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks