None of USMV’s holdings exceed weights of 1.57%. Unlike many rival low volatility strategies, USMV features a large technology weighting at almost 22%. The defensive healthcare and consumer staples sectors combine for almost 26% of the fund’s weight.
“This fund doesn’t directly target stocks with low volatility, though it still heavily favors them. It considers expected individual stock volatility and correlations across stocks, under a set of constraints, like limiting sector tilt,” according to Morningstar.
The research firm rates USMV Silver.
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