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USMV devotes less than 4% of its weight to the cyclical and struggling energy and materials sectors. Additionally, the ETF devotes just 16.60% of its weight to the rate-sensitive utilities and real estate sectors. Compared to rival low volatility ETFs, USMV’s weights to those sectors is relatively low.
“To the extent growth is likely to decelerate further from here, I would continue to lean towards lower-beta, i.e. more defensive stocks, along with a greater emphasis on quality,” said BlackRock.
In the fourth quarter, investors have added $1.95 billion in new assets to USMV. The fund is up more than 7% year-to-date.
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