Thus, USMV and SPLV specifically have had nice runs in terms of asset growth and steady growth in day over day trading volumes, and have in essence spawned greater investor appetite for similar “Low Vol” products such as the fast growing EEMV (iShares MSCI Emerging Markets Minimum Volatility, Expense Ratio 0.25%), ACWV (iShares MSCI All Country World Minimum Volatility, Expense Ratio 0.35%), and EFAV (iShares MSCI EAFE Minimum Volatility, Expense
Ratio 0.20%), which collectively have amassed $3.8 billion.
The “Low Vol” space, which was largely an unknown concept prior to 2011, is now not only part of daily conversations in the ETF investment management community, but a fast growing space, as there are currently eighteen products that are categorized in the space, most having debuted recently. Inroads have been smaller in areas outside of “Large Cap”, as the recently launched XSLV (PowerShares S&P SmallCap Low Volatility, Expense Ratio 0.25%), XMLV (PowerShares S&P MidCap Low Volatility, Expense Ratio 0.25%), SMLV (SPDR Russell 2000 Low Volatility, Expense Ratio 0.25%), and LGLV (SPDR Russell 1000 Low Volatility, Expense Ratio 0.20%) still remain rather small in terms of asset bases.
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