USMV vs. ACWV
Compare and contrast key facts about iShares Edge MSCI Min Vol USA ETF (USMV) and iShares MSCI Global Min Vol Factor ETF (ACWV).
USMV and ACWV are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. USMV is a passively managed fund by iShares that tracks the performance of the MSCI USA Minimum Volatility Index. It was launched on Oct 18, 2011. ACWV is a passively managed fund by iShares that tracks the performance of the MSCI AC World Minimum Volatility (USD). It was launched on Oct 18, 2011. Both USMV and ACWV are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: USMV or ACWV.
Key characteristics
| USMV | ACWV | |
|---|---|---|
| YTD Return | 4.40% | 2.98% |
| 1Y Return | 13.63% | 6.90% |
| 3Y Return (Ann) | 5.75% | 2.87% |
| 5Y Return (Ann) | 8.25% | 5.04% |
| 10Y Return (Ann) | 10.49% | 7.12% |
| Sharpe Ratio | 1.53 | 0.90 |
| Daily Std Dev | 8.50% | 7.68% |
| Max Drawdown | -33.10% | -28.82% |
| Current Drawdown | -2.96% | -1.90% |
Correlation
The correlation between USMV and ACWV is 0.90, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
USMV vs. ACWV - Performance Comparison
In the year-to-date period, USMV achieves a 4.40% return, which is significantly higher than ACWV's 2.98% return. Over the past 10 years, USMV has outperformed ACWV with an annualized return of 10.49%, while ACWV has yielded a comparatively lower 7.12% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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USMV vs. ACWV - Expense Ratio Comparison
USMV has a 0.15% expense ratio, which is lower than ACWV's 0.20% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
USMV vs. ACWV - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Edge MSCI Min Vol USA ETF (USMV) and iShares MSCI Global Min Vol Factor ETF (ACWV). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
USMV vs. ACWV - Dividend Comparison
USMV's dividend yield for the trailing twelve months is around 1.80%, less than ACWV's 2.34% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
USMV iShares Edge MSCI Min Vol USA ETF | 1.80% | 1.82% | 1.62% | 1.26% | 1.81% | 1.88% | 2.12% | 1.77% | 2.22% | 2.02% | 1.88% | 2.18% |
ACWV iShares MSCI Global Min Vol Factor ETF | 2.34% | 2.41% | 2.18% | 1.92% | 1.77% | 2.54% | 2.32% | 2.04% | 2.56% | 2.28% | 2.22% | 2.47% |
Drawdowns
USMV vs. ACWV - Drawdown Comparison
The maximum USMV drawdown since its inception was -33.10%, which is greater than ACWV's maximum drawdown of -28.82%. Use the drawdown chart below to compare losses from any high point for USMV and ACWV. For additional features, visit the drawdowns tool.
Volatility
USMV vs. ACWV - Volatility Comparison
iShares Edge MSCI Min Vol USA ETF (USMV) and iShares MSCI Global Min Vol Factor ETF (ACWV) have volatilities of 2.39% and 2.40%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.