The iShares MSCI USA Min Vol Factor ETF (USMV) is an exchange-traded fund designed to track the performance of U.S. equities with historically lower volatility characteristics. The ETF is managed by BlackRock through the iShares platform and trades under the ticker USMV on NYSE Arca.

Classified as an equity ETF focused on low-volatility U.S. stocks, USMV seeks to reflect, before fees and expenses, the aggregated performance of the companies included in the MSCI USA Minimum Volatility Index (USD).

The fund follows a passive management strategy based on volatility optimization. The benchmark uses quantitative models that consider historical variance, asset correlation, and risk-factor exposure in an effort to achieve lower relative volatility compared to the broader U.S. equity market.

The methodology seeks to construct a portfolio with historically lower price fluctuations relative to the MSCI USA Index, although it does not eliminate market risk or guarantee downside protection.

Diversification and sector exposure

USMV provides exposure to the U.S. equity market with a bias toward historically lower-volatility companies across sectors including:

• Information technology.

• Health care.

• Consumer discretionary and consumer staples.

• Utilities.

• Financials.

• Industrials.

This composition reflects multiple segments of the U.S. economy historically associated with lower relative volatility characteristics.

Structure and costs

USMV shares trade on the secondary market on NYSE Arca during regular trading hours. Creation and redemption occur through authorized participants, helping maintain alignment between market price and net asset value.

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. USMV may distribute income derived from dividends paid by companies held in the portfolio.

History and evolution of the ETF

The iShares MSCI USA Min Vol Factor ETF was launched in 2011, during a period of growth in factor-based investing strategies and rising interest in quantitative approaches focused on reducing volatility in U.S. equities.

Since inception, the fund has reflected movements related to U.S. equity-market volatility, macroeconomic cycles, and changing dynamics between defensive sectors and growth-oriented companies.

In recent years, USMV has reflected Federal Reserve monetary policy cycles, periods of elevated market volatility, rotations between growth and defensive equities, and shifts in global macroeconomic conditions.

Additional Information

iShares MSCI USA Min Vol Factor ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $23.91 billion.

Over the past 12 months, iShares MSCI USA Min Vol Factor ETF recorded a return of 7.39%, with its price trading between $91.12 and $101.98 during the same period.

The ETF is traded under the ticker USMV.