- USMV is a low volatility fund that often times outperforms during drawdowns, but then significantly underperforms in recoveries.
- USMV holders are advised to keep on keeping on and not to be too discouraged at the large underperformance.
- Its constituents are virtually all cash flow positive over the last twelve months and have very manageable debt levels.
- USMV should recover, but a strategy focused on a combination of volatility, momentum, and quality is likely to yield better, long-term results.
For further details see:
USMV: A Risky Play That Could Be Worth A Fortune