iShares MSCI USA Min Volatility Factor ETF (USMV): Complete Beginner's Guide
iShares MSCI USA Min Volatility Factor ETF (USMV) is a low volatility ETF from BlackRock with an expense ratio of 0.15% and $25.0B in assets under management. Our Beginner Suitability Score: 9.5/10 (Great for Beginners). 5-year annualized return: 9.80%.
Last updated: April 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% |
USMV's top holding is Waste Management Inc. (WM) at 1.80%, followed by T-Mobile US Inc. (TMUS) at 1.70% and Coca-Cola Co. (KO) at 1.60%. The top 10 holdings account for 15.10% of the fund's 170 total positions.
View data table
| Rank | 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%
USMV has returned 9.80% annualized over 5 years and 10.20% over 10 years. YTD return is 2.50%.
View data table
| Period | Return |
|---|---|
| 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.
USMV Sector Allocation
Here's how USMV distributes its investments across different sectors of the economy:
USMV's largest sector allocation is Information Technology at 20.0%, followed by Health Care at 16.5% and Financials at 14.0%.
View data table
| Sector | Weight |
|---|---|
| Information Technology | 20.0% |
| Health Care | 16.5% |
| Financials | 14.0% |
| Consumer Staples | 13.0% |
| Industrials | 10.0% |
| Communication Services | 8.0% |
| Utilities | 7.0% |
| Consumer Discretionary | 5.0% |
| Real Estate | 3.5% |
| Energy | 1.8% |
| Materials | 1.2% |
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.
USMV's expense ratio of 0.15% costs $1,278 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $45,332.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,592 | $101 |
| 10 | $21,589 | $21,291 | $298 |
| 15 | $31,722 | $31,067 | $655 |
| 20 | $46,610 | $45,332 | $1,278 |
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.
What sectors does USMV invest in?▾
USMV's largest sector allocations are Information Technology (20.00%), Health Care (16.50%), Financials (14.00%). This sector distribution shows a focus on information technology stocks.
How much do USMV's fees cost over time?▾
With an expense ratio of 0.15%, a $10,000 investment in USMV would lose approximately $1,278 to fees over 20 years (assuming 8% annual returns). Consider whether the fund's strategy justifies these costs.