USMV: One Statistic Makes This Long-Running, Low-Risk ETF Special

The Sunday Investor7.19K FollowersFollow5ShareSavePlay(12min)CommentsSummaryUSMV is one of only five multi-sector U.S. equity ETFs that have limited their one-year rolling losses to 10% or less in the last decade.This statistic makes USMV a special offering for defensive investors. Still, its long-term total and risk-adjusted returns have lagged three others with this designation: DGRW, DGRO, and LGLV.My performance and returns distribution analysis confirms that USMV's "problem" has been relatively weak performance in bull markets.However, an analysis of its current fundamentals paints a brighter picture, especially since USMV's components have excellent double-digit historical and estimated EPS growth rates.USMV's valuation and quality features are also appealing, and with strong company-level diversification, it should succeed in a market where mega-caps are less dominant. As a result, I've rated it a "buy." marrio31/iStock via Getty Images Investment Thesis You can count on one hand the number of multi-sector U.S. Equity ETFs that have limited their one-year rolling losses to 10% or less over the last ten years. Fortunately, the iShares MSCI USA Min Vol FactorThis article was written byThe Sunday Investor7.19K FollowersFollowThe Sunday Investor is focused exclusively on U.S. Equity ETFs. He has a strong analytical background, has received a Certificate of Advanced Investment Advice from the Canadian Securities Institute, and has completed all the educational requirements for the Chartered Investment Manager designation.Having covered hundreds of ETFs on Seeking Alpha, The Sunday Investor has developed a complex, proprietary ETF Rankings system which he shares on his website, etf-rankings.com. Nearly 1,000 ETFs receive individual factor scores covering costs, liquidity, risk, size, value, dividends, growth, quality, momentum, and sentiment, which feed into an easy-to-understand composite score from 1-10.

The Sunday Investor is always active in the comments section in his articles - please don't hesitate to reach out via comment in any article or by visiting etf-rankings.com. Happy Investing!Analyst’s Disclosure: I/we have a beneficial long position in the shares of SPY, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.