CTA - USMV: Not As Safe As You May Think
2025-03-11 09:05:55 ET
Summary
- Amid a sharp selloff, I revisit the iShares Edge MSCI Min Vol USA ETF (USMV) for its low-volatility profile and potential downside protection.
- USMV offers exposure to large- and mid-cap US stocks with lower volatility, featuring conservative holdings like IBM, Cisco, and Walmart.
- Despite USMV's recent outperformance, I caution against overestimating its defenses.
- For better downside protection, consider diversifying across asset classes or adding truly defensive holdings like BTAL and CTA ETFs to your portfolio.
Amid a sharp selloff in US equities, the quickest drop of 6% or more since the early COVID-19 days of September 2020, there isn't much more to discuss now than how to effectively play defense....
USMV: Not As Safe As You May Think