Minimum Volatility & Value ETFs for Turbulent Markets

  • (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 selects and weights companies to create a portfolio that has lower volatility relative to the broader market. Vertex Pharmaceuticals VRTX and Waste Management WM 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 invests in large- and mid-cap stocks with lower valuations based on fundamentals. AT&T T and Intel INTC 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, which aims to maximize exposure to five factors – value, quality, momentum, low volatility, and small size. Apple AAPL, Microsoft MSFT and Amazon AMZN 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

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.

Get it free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report, Inc. (AMZN): Free Stock Analysis Report
Intel Corporation (INTC): Free Stock Analysis Report
AT&T Inc. (T): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report
Waste Management, Inc. (WM): Free Stock Analysis Report
iShares MSCI USA Min Vol Factor ETF (USMV): ETF Research Reports
iShares MSCI USA Value Factor ETF (VLUE): ETF Research Reports
iShares U.S. Equity Factor ETF (LRGF): ETF Research Reports
To read this article on click here.
Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.