Low-Volatility Is Standout Winner For Equity Factors This Year
Portfolio Pulse from
The iShares MSCI Minimum Volatility ETF (USMV) has demonstrated strong performance in 2023, gaining 4.8% year-to-date while the broader stock market experiences a 2.3% loss. In contrast, high-beta stocks represented by the SPHB ETF have significantly underperformed, dropping 8.1% during the same period.
March 18, 2025 | 11:30 am
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POSITIVE IMPACT
USMV has outperformed the broader market, gaining 4.8% year-to-date, reflecting investor preference for low-risk, stable investments in current market conditions.
The ETF's performance indicates strong investor demand for low-risk assets during market volatility. Its positive year-to-date return contrasts sharply with market losses, suggesting continued potential for growth.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
NEGATIVE IMPACT
SPHB has experienced a substantial 8.1% year-to-date decline, reflecting the challenging environment for high-risk, volatile stocks.
The significant loss in the high-beta ETF indicates investor risk aversion and preference for more stable investment strategies during current market conditions.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100