XMLV tracks the performance of the S&P MidCap 400 Low Volatility Index, which tracks 80 of the least volatile stocks from the S&P MidCap 400 Index over the past 12 months and weights holdings based on the securities’ inverse volatility, so the least volatile securities have the highest weighting.
Related: An Attractive Mid-Cap Value ETF Play
Real estate stocks have recently been drags on mid-cap benchmarks.
“Of course, there are other factors involved, but with interest rates rising the last few weeks, Real Estate stocks (and IYR) have gotten clobbered. Given their relatively large influence within the MDY, they’d had an outsized effect on its recent performance,” according to the Instinet note featured in Barron’s.
For more information on the low-vol strategy, visit our low-volatility category.
iShares Core S&P Mid-Cap ETF (NYSEArca: IJH)