iShares MSCI USA Min Vol Factor ETF: U S. Recession Insurance Is On Sale BATS:USMV

Sign Up NowGet this delivered to your inbox, and more info about our products and services. ETF Database’s Financial Advisor Reports are designed as an easy handout for clients to explain the key information on a fund. View charts that break down the influence that fund flows and price had on overall assets. The $728.7 million QQQJ, which turns three years old in October, was among several mid-cap ETFs highlighted by Chronert.

The People Pillar is our evaluation of the https://1investing.in/ management team’s experience and ability. Get our overall rating based on a fundamental assessment of the pillars below. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. Detailed Holdings and Analytics contains detailed portfolio holdings information and select analytics. Where data is not available, and / or if data changes, the estimation methods vary, particularly those related to a company’s future emissions.

This fund does not seek to follow a sustainable, impact or ESG investment strategy. The metrics do not change the fund’s investment objective or constrain the fund’s investable universe, and there is no indication that a sustainable, impact or ESG investment strategy will be adopted by the fund. For more information regarding the fund’s investment strategy, please see the fund’s prospectus. USMV’s 7.85% estimated earnings growth rate aligns with SPY’s 7.90%.

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Some funds may be based on or linked to MSCI indexes, and MSCI may be compensated based on the fund’s assets under management or other measures. MSCI has established an information barrier between equity index research and certain Information. None of the Information in and of itself can be used to determine which securities to buy or sell or when to buy or sell them.

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USMV launched in October 2011 after the Great Financial Crisis, so its history is limited. However, the drawdown tables below highlight how it outperforms SPY in bear markets. From January to September 2022, USMV declined by 17.35% compared to 23.93% for SPY, a 6.58% beat. Except for the COVID-19 decline, which matched SPY, USMV experienced no other significant losses. Information is provided ‘as is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use, please see disclaimer.

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I/we have a beneficial long position in the shares of SPY, BRK.B either through stock ownership, options, or other derivatives. The Index page provides additional performance information, noting how it launched on June 2, 2008. There were two other significant drawdowns not included in the table above since SPY’s 1993 launch. The first was between September 2000 and September 2002, when SPY declined by 44.71%. The Index fell 25.16% during this period, a 19.56% fee-adjusted outperformance. The second was SPY’s 50.80% decline between November 2007 and February 2009.

• The table below is a correlation matrix for its top ten holdings based on 25 years of monthly returns.
• The ITR metric estimates a fund’s alignment with the Paris Agreement temperature goal.
• It beat SPY by approximately 6% in the 2018 and 2022 drawdowns and saved investors 10% and 20% through the Great Financial Crisis and Dot Com Bubble crashes.
• Standardized performance and performance data current to the most recent month end may be obtained by clicking the “Returns” tab above.
• Business Involvement metrics are only displayed if at least 1% of the fund’s gross weight includes securities covered by MSCI ESG Research.
• There were two other significant drawdowns not included in the table above since SPY’s 1993 launch.

Current performance may be lower or higher than the performance quoted, and numbers may reflect small variances due to rounding. Standardized performance and performance data current to the most recent month end may be obtained by clicking the “Returns” tab above. The Hypothetical Growth of $10,000 chart reflects a hypothetical $10,000 investment and assumes reinvestment of dividends and capital gains. Fund expenses, including management fees and other expenses were deducted. USMV now offers the same earnings growth as SPY but for a 3.29-point discount on forward earnings, all while featuring a 0.70 five-year beta that only a handful of sector ETFs can match. It beat SPY by approximately 6% in the 2018 and 2022 drawdowns and saved investors 10% and 20% through the Great Financial Crisis and Dot Com Bubble crashes.

USMV: U.S. Recession Insurance Is On Sale

The ITR metric is calculated by looking at the current emissions intensity of companies within the fund’s portfolio as well as the potential for those companies to reduce its emissions over time. If emissions in the global economy followed the same trend as the emissions of companies within the fund’s portfolio, global temperatures would ultimately rise within this band. The type of security you turn to for recession protection is crucial.

Financial Architects Inc boosted its stake in shares of iShares Core S&P U.S. Growth ETF by 24.7% during the 4th quarter. Financial Architects Inc now owns 3,519 shares of the company’s stock worth $287,000 after purchasing an additional 698 shares during the last quarter. Phoenix Wealth Advisors raised its stake in shares of iShares Core S&P U.S. Growth ETF by 29.5% during the fourth quarter. Phoenix Wealth Advisors now owns 45,343 shares of the company’s stock valued at $3,696,000 after purchasing an additional 10,335 shares during the period. RPG Investment Advisory LLC raised its stake in shares of iShares Core S&P U.S. Growth ETF by 12.5% during the fourth quarter.

You need high certainty that the strategy will work to some meaningful degree, and I don’t think most individual stocks offer that comfort. USMV’s standout metric is its 0.70 five-year beta, indicating it’s approximately 30% less volatile than SPY. Except for IT Consulting & Other Services and Semiconductors, all industries have betas below market. USMV accomplishes this low beta by underweighting or outright avoiding stocks like Apple , NVIDIA , Meta Platforms , and Tesla . Choosing a diversified fund like USMV is crucial for investors buying recession insurance.

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Sustainability Characteristics do not provide an indication of current or future performance nor do they represent the potential risk and reward profile of a fund. They are provided for transparency and for information purposes only. Sustainability Characteristics should not be considered solely or in isolation, but instead are one type of information that investors may wish to consider when assessing a fund. Other large investors have also made changes to their positions in the company.

You could choose one stock, a dedicated sector ETF, or a well-diversified fund like USMV. Health Care is at 20%, followed by Technology (16%), Consumer Staples (13%), and Financials (13%). Energy stocks traditionally decline in recessions, so I’m pleased to see almost no exposure here. Real Estate might also come under pressure, as it did in the Subprime Crisis when VNQ lost 65% between November 2007 and March 2009. Finally, Materials exposure is limited to eight stocks totaling 3%.

After reading, I hope to convince you why USMV is an excellent choice you can rely on if recession concerns grow. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. The Parent Pillar is our rating of IWB’s parent organization’s priorities and whether they’re in line with investors’ interests. The Process Pillar is our assessment of how sensible, clearly defined, and repeatable IWB’s performance objective and investment process is for both security selection and portfolio construction. As a global investment manager and fiduciary to our clients, our purpose at BlackRock is to help everyone experience financial well-being.

As a result, BlackRock publishes MSCI’s ITR metric for its funds in temperature range bands. The bands help to underscore the underlying uncertainty in the calculations and the variability of the metric. Equity ETFs and aim to provide you with the most comprehensive ETF coverage on Seeking Alpha.

BlackRock provides compensation in connection with obtaining or using third-party ratings and rankings. Climate change is one of the greatest challenges in human history and will have profound implications for investors. To address climate change, many of the world’s major countries have signed the Paris Agreement.

While a slew of how bonds work 2 traded funds offer exposure to smaller stocks with growth profiles, investors have long embraced large- and mega-cap equivalents. Business Involvement metrics are calculated by BlackRock using data from MSCI ESG Research which provides a profile of each company’s specific business involvement. BlackRock leverages this data to provide a summed up view across holdings and translates it to a fund’s market value exposure to the listed Business Involvement areas above. However, that doesn’t mean investors can’t locate compelling growth opportunities outside of the large/mega-cap arena.

To view information on how the ETF Database Realtime Ratings work, click here. IShares Russell 1000 Growth ETF , formerly iShares Russell 1000 Growth Index Fund, is an exchange-traded fund . The Fund seeks investment returns that correspond generally to the price and yield performance of the Russell 1000 Growth Index . The Index measures the performance of equity securities of Russell 1000 index issuers with relatively higher price-to-book ratios and higher forecasted growth. The Fund seeks investment returns that correspond generally to the price and yield performance, before fees and expenses, of the Index. The Index measures the performance of the large-capitalization growth sector of the US equity market.

The ITR metric estimates a fund’s alignment with the Paris Agreement temperature goal. However, there is no guarantee that these estimates will be reached. The ITR metric is not a real time estimate and may change over time, therefore it is prone to variance and may not always reflect a current estimate.

Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. The iShares Russell 1000 Growth ETF is designated as “diversified” and the fund intends to be diversified in approximately the same proportion as its underlying index. It may become non-diversified, as defined in the Investment Company Act of 1940, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of its underlying index.

The following charts reflect the geographic spread of IWF’s underlying holdings. In the case of QQQJ, smaller, relatively speaking, could be better because some experts see underappreciated opportunity in the mid-cap arena. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index quotes are real-time. To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

It’s well-diversified at the sector, industry, and company level and optimized to favor low-beta, low-volatile companies with low idiosyncratic risk. Constituents grew sales by 10.49% over the last five years, but analysts estimate just 4.65% sales growth over the next year, with 5.47% EPS growth. The best part is that nearly the entire fund has a perfect “A+” Seeking Alpha Profitability Grade. Quality matters in a recession, but I want to remind readers that Health Care is USMV’s largest sector exposure area. XLP has a low 0.59 five-year beta but offers less earnings growth (6.08%) than USMV and trades at a higher 24.28x forward earnings. Costco trades at 34.51x forward earnings and is 8.70% of the portfolio.