If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the iShares MSCI USA Min Vol Factor ETF (USMV Quick QuoteUSMV - Free Report) , a passively managed exchange traded fund launched on 10/18/2011.

The fund is sponsored by Blackrock. It has amassed assets over $23.81 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.

Why Large Cap Blend

Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.

Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.

Costs

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 1.57%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector--about 27.30% of the portfolio. Financials and Healthcare round out the top three.

Looking at individual holdings, International Business Machines Co (IBM Quick QuoteIBM - Free Report) accounts for about 1.60% of total assets, followed by Exxon Mobil Corp (XOM Quick QuoteXOM - Free Report) and Microsoft Corp (MSFT Quick QuoteMSFT - Free Report) .

The top 10 holdings account for about 15.26% of total assets under management.

Performance and Risk

USMV seeks to match the performance of the MSCI USA Minimum Volatility Index before fees and expenses. The MSCI USA Minimum Volatility (USD) Index is composed of U.S. equities that, in the aggregate, have lower volatility characteristics relative to the broader U.S. equity market.

The ETF has added about 6.30% so far this year and is up roughly 13.33% in the last one year (as of 07/10/2025). In the past 52-week period, it has traded between $84.95 and $94.57.

The ETF has a beta of 0.70 and standard deviation of 12.27% for the trailing three-year period, making it a medium risk choice in the space. With about 183 holdings, it effectively diversifies company-specific risk.

Alternatives

IShares MSCI USA Min Vol Factor ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, USMV is an excellent option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.

The SPDR S&P 500 ETF (SPY Quick QuoteSPY - Free Report) and the Vanguard S&P 500 ETF (VOO Quick QuoteVOO - Free Report) track a similar index. While SPDR S&P 500 ETF has $641.52 billion in assets, Vanguard S&P 500 ETF has $688.84 billion. SPY has an expense ratio of 0.09% and VOO charges 0.03%.

Bottom-Line

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.