The marquee difference between the two funds should not be ignored at a time when Treasury yields could rise again. SPLV allocates a combined 45% of its sector weight to rate sensitive utilities and staples. USMV devotes just 23% of its weight to those sectors.
Health care and financial services are USMV’s top sector weights, combining for almost 34% and with technology getting a weight of almost 14%, USMV is a bit more “risk on” and less rate sensitive than its rival S&P Capital IQ rates both ETFs Overweight.
iShares MSCI USA Minimum Volatility ETF
ETF Trends editorial team contributed to this post.