iShares MSCI USA Min Volatility Factor ETF (USMV): Complete Beginner's Guide
Last updated: March 2026 • BlackRock • Low Volatility
Expense Ratio
0.15%
AUM
$25.0B
Dividend Yield
1.80%
Inception
2011
Beginner Score
9.5/10
What is iShares MSCI USA Min Volatility Factor ETF?
USMV seeks to build a portfolio of U.S. stocks that together exhibit lower overall volatility than the broad market. Using an optimization process, it selects and weights stocks to minimize portfolio-level risk rather than simply picking low-beta stocks. Beginners who want equity market participation with a smoother ride and smaller drawdowns often find USMV helps them stay invested during turbulent times.
USMV is managed by BlackRock and has been available since 2011. With $25.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.15%, which means for every $10,000 you invest, you pay approximately $15 per year in management fees.
USMV at a Glance — Key Metrics
| Expense Ratio | 0.15% |
| Total Holdings | 170 |
| P/E Ratio | 22.8 |
| Beta | 0.72 |
| Dividend Yield | 1.80% |
| AUM | $25.0B |
| Inception Year | 2011 |
| Issuer | BlackRock |
Top 10 Holdings in USMV
USMV holds 170 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Waste Management Inc. | WM | 1.80% |
| 2 | T-Mobile US Inc. | TMUS | 1.70% |
| 3 | Coca-Cola Co. | KO | 1.60% |
| 4 | Berkshire Hathaway Inc. | BRK.B | 1.60% |
| 5 | Visa Inc. | V | 1.50% |
| 6 | PepsiCo Inc. | PEP | 1.50% |
| 7 | Procter & Gamble Co. | PG | 1.40% |
| 8 | Republic Services Inc. | RSG | 1.40% |
| 9 | Colgate-Palmolive Co. | CL | 1.30% |
| 10 | Johnson & Johnson | JNJ | 1.30% |
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USMV Performance History
Here's how USMV has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
2.50%
1 Year
18.50%
3 Year
8.50%
5 Year
9.80%
10 Year
10.20%
Beginner Suitability Score: 9.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
USMV scores 9.5/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 170 holdings, and has been available since 2011, giving it a proven track record.
How to Buy USMV — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "USMV" — Use the search bar in your brokerage platform to find iShares MSCI USA Min Volatility Factor ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into USMV
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With USMV's expense ratio of 0.15%, a $10,000 investment would lose approximately $1,278 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.
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Pros and Cons of USMV
Pros
- ✓Designed to deliver equity returns with meaningfully lower volatility than the broad market
- ✓Optimization approach considers correlations, not just individual stock volatility
- ✓Historically experiences smaller drawdowns during market sell-offs and corrections
- ✓Good option for risk-averse investors who still want meaningful stock market exposure
Cons
- ✗Tends to lag significantly during strong bull markets and momentum-driven rallies
- ✗Low-volatility factor can become crowded and expensive when too many investors seek safety
- ✗Does not eliminate downside risk entirely and can still lose value in severe downturns
USMV vs Similar ETFs
See how USMV stacks up against similar funds:
Frequently Asked Questions
Is USMV a good ETF for beginners?▾
USMV has a Beginner Suitability Score of 9.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of USMV?▾
USMV has an expense ratio of 0.15%. This means for every $10,000 you invest, you pay approximately $15 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in USMV?▾
You can invest in USMV with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does USMV pay dividends?▾
Yes, USMV pays dividends with a current yield of approximately 1.80%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in USMV?▾
The top holdings in USMV include Waste Management Inc. (1.80%), T-Mobile US Inc. (1.70%), Coca-Cola Co. (1.60%), and more. The fund holds 170 total positions, providing broad diversification across many companies.