XMLV’s largest sector weight is a 54.3% weight to financial services, more than quadruple the fund’s weight to the utilities sector. Consumer staples stocks are XMLV’s smallest sector weight at just 1.6%. [Surprises in Low Volatility ETFs]
XMLV’s financial services and utilities weights have changed significantly since we last highlighted the ETF on November 11. Back then, the ETF’s weight to financials was “just” 40% and over 18% to utilities. However, rising Treasury yields have led to increased volatility for utilities stocks.
Conversely, those rising yields have been a boon for smaller banks and insurance providers of which 10 such companies reside among XMLV’s 78 holdings. XMLV has more than doubled in size to $92.6 million in assets since our aforementioned November visit with the ETF.
PowerShares S&P MidCap Low Volatility Portfolio
