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Minimum Volatility & Value ETFs for Turbulent Markets

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  • (1:00) - Understanding The Current Market: How Should You Position Your Portfolio For The Rest of The Year?
  • (6:55) - Can You Hold Minimum Volatility Strategies For The Long Term?
  • (10:30) - Low Volatility vs. Minimum Volatility
  • (13:00) - Should You Be Investing In Value Stocks Right Now?
  • (17:15) - How Can Multi-factor ETFs Benefit Your Portfolio?

In this episode of ETF Spotlight, I speak with Lukas Smart, Managing Director, Head of U.S. iShares Factor Strategies at BlackRock, the world’s largest asset manager. We discuss how investors can use factor ETFs to navigate choppy and uncertain markets.

Minimum volatility investing is back in vogue due to extremely challenging market environment. These ETFs hold up relatively well during market declines but may underperform the broader indexes during strong bull markets. Lukas explains why investors should consider a long-term strategic allocation to minimum volatility.

The iShares Edge MSCI Min Vol U.S.A. ETF (USMV - Free Report) selects and weights companies to create a portfolio that has lower volatility relative to the broader market. Vertex Pharmaceuticals (VRTX - Free Report) and Waste Management (WM - Free Report) are its top holdings.

Value companies have generally outperformed growth companies during rising rates and inflationary environments.  Investors could consider combining minimum volatility exposure with value to achieve greater diversification benefits.

The iShares MSCI USA Value Factor ETF (VLUE - Free Report) invests in large- and mid-cap stocks with lower valuations based on fundamentals. AT&T (T - Free Report) and Intel (INTC - Free Report) are its top holdings.

Factor returns have generally proven to be highly cyclical. And timing the market is never easy. Should investor also use multi-factor strategies?

Take a look the iShares U.S. Equity Factor ETF (LRGF - Free Report) , which aims to maximize exposure to five factors – value, quality, momentum, low volatility, and small size. Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) and Amazon (AMZN - Free Report) are its top holdings.

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email

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