XSLV vs. USMV

Last updated Jun 14, 2026

XSLV (Invesco S&P SmallCap Low Volatility ETF) and USMV (iShares MSCI USA Min Vol Factor ETF) are both exchange-traded funds - XSLV is a Volatility Hedged Equity fund tracking the S&P SmallCap 600 Low Volatility Index, while USMV is a Large Cap Blend Equities fund tracking the MSCI USA Minimum Volatility Index. Both are passively managed. Over the past 10 years, XSLV returned 6.00%/yr vs 9.90%/yr for USMV. A 0.70 correlation means they provide meaningful diversification when combined. XSLV charges 0.25%/yr vs 0.15%/yr for USMV.

Performance

XSLV vs. USMV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Low Volatility ETF (XSLV) and iShares MSCI USA Min Vol Factor ETF (USMV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XSLV achieves a 11.92% return, which is significantly higher than USMV's 2.43% return. Over the past 10 years, XSLV has underperformed USMV with an annualized return of 6.00%, while USMV has yielded a comparatively higher 9.90% annualized return.

XSLV

• 1D: 0.86%
• 1M: 4.90%
• YTD: 11.92%
• 6M: 10.45%
• 1Y: 17.16%
• 3Y*: 9.90%
• 5Y*: 3.88%
• 10Y*: 6.00%

USMV

• 1D: 0.43%
• 1M: 0.91%
• YTD: 2.43%
• 6M: 2.34%
• 1Y: 4.89%
• 3Y*: 11.35%
• 5Y*: 7.24%
• 10Y*: 9.90%

*Multi-year figures are annualized to reflect compound growth (CAGR)

XSLV vs. USMV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XSLV Invesco S&P SmallCap Low Volatility ETF	11.92%	0.31%	9.81%	1.34%	-11.83%	29.34%	-17.40%	22.35%	-5.41%	8.57%
USMV iShares MSCI USA Min Vol Factor ETF	2.43%	7.65%	15.74%	10.33%	-9.43%	20.85%	5.64%	27.69%	1.33%	18.91%

Correlation

The correlation between XSLV and USMV is 0.57, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.70
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Feb 15, 2013	0.70

The correlation between XSLV and USMV shifts across timeframes, from 0.57 (1 year) to 0.70 (all time), reflecting how their relationship changes across market environments.

XSLV vs. USMV - Sectors Allocation Comparison

Sectors	XSLV	USMV
Financial Services	41.8%	11.7%
Real Estate	30.8%	2.5%
Utilities	8.8%	6.9%
Industrials	7.0%	6.1%
Consumer Defensive	3.8%	9.4%
Basic Materials	2.6%	2.4%
Consumer Cyclical	2.2%	5.7%
Healthcare	1.5%	12.6%
Communication Services	1.1%	6.2%
Technology	0.9%	33.9%
Energy	0.8%	2.7%

Return for Risk

XSLV vs. USMV — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

XSLV

XSLV Risk / Return Rank: 40
XSLV Sharpe Ratio Rank: 37
XSLV Sortino Ratio Rank: 39
XSLV Omega Ratio Rank: 33
XSLV Calmar Ratio Rank: 47
XSLV Martin Ratio Rank: 42

USMV

USMV Risk / Return Rank: 17
USMV Sharpe Ratio Rank: 18
USMV Sortino Ratio Rank: 16
USMV Omega Ratio Rank: 15
USMV Calmar Ratio Rank: 18
USMV Martin Ratio Rank: 20

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

XSLV vs. USMV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Low Volatility ETF (XSLV) and iShares MSCI USA Min Vol Factor ETF (USMV). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	XSLV	USMV	Difference
Sharpe ratio: Return per unit of total volatility	1.17	0.47	+0.70
Sortino ratio: Return per unit of downside risk	1.79	0.72	+1.07
Omega ratio: Gain probability vs. loss probability	1.20	1.08	+0.12
Calmar ratio: Return relative to maximum drawdown	2.09	0.62	+1.47
Martin ratio: Return relative to average drawdown	5.97	2.06	+3.91

XSLV vs. USMV - Sharpe Ratio Comparison

The current XSLV Sharpe Ratio is 1.17, which is higher than the USMV Sharpe Ratio of 0.47. The chart below compares the historical Sharpe Ratios of XSLV and USMV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

XSLV vs. USMV - Drawdown Comparison

The maximum XSLV drawdown since its inception was -44.34%, which is greater than USMV's maximum drawdown of -33.10%. Use the drawdown chart below to compare losses from any high point for XSLV and USMV.

Drawdown Indicators

	XSLV	USMV	Difference
Max Drawdown Largest peak-to-trough decline	-44.34%	-33.10%	-11.24%
Max Drawdown (1Y) Largest decline over 1 year	-7.46%	-6.46%	-1.00%
Max Drawdown (3Y) Largest decline over 3 years	-18.35%	-9.36%	-8.99%
Max Drawdown (5Y) Largest decline over 5 years	-24.72%	-17.93%	-6.79%
Max Drawdown (10Y) Largest decline over 10 years	-44.34%	-33.10%	-11.24%
Current Drawdown Current decline from peak	0.00%	-1.40%	+1.40%
Average Drawdown Average peak-to-trough decline	-7.27%	-2.87%	-4.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.62%	1.95%	+0.67%

Volatility

XSLV vs. USMV - Volatility Comparison

Invesco S&P SmallCap Low Volatility ETF (XSLV) has a higher volatility of 4.32% compared to iShares MSCI USA Min Vol Factor ETF (USMV) at 2.70%. This indicates that XSLV's price experiences larger fluctuations and is considered to be riskier than USMV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XSLV	USMV	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.32%	2.70%	+1.62%
Volatility (6M) Calculated over the trailing 6-month period	9.08%	6.02%	+3.06%
Volatility (1Y) Calculated over the trailing 1-year period	13.33%	8.56%	+4.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.69%	12.36%	+4.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.94%	14.51%	+5.43%

XSLV vs. USMV - Expense Ratio Comparison

XSLV has a 0.25% expense ratio, which is higher than USMV's 0.15% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

XSLV vs. USMV - Dividend Comparison

XSLV's dividend yield for the trailing twelve months is around 2.48%, more than USMV's 1.53% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
USMV iShares MSCI USA Min Vol Factor ETF	1.53%	1.49%	1.67%	1.82%	1.62%	1.26%	1.81%	1.88%	2.12%	1.77%	2.22%	2.02%
XSLV Invesco S&P SmallCap Low Volatility ETF	2.48%	2.14%	2.55%	2.35%	2.78%	1.05%	2.49%	2.43%	2.75%	1.87%	1.96%	2.20%

Frequently Asked Questions

Can I hold both XSLV and USMV in my portfolio?

XSLV and USMV have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XSLV or USMV?

XSLV has higher volatility (4.32%) compared to USMV (2.70%). In terms of maximum drawdown, XSLV dropped -44.34% vs USMV's -33.10%.

Which ETF is better, XSLV or USMV?

On 10-year performance, USMV leads with 9.90% vs 6.00% for XSLV. On fees, USMV is cheaper at 0.15% per year. On volatility, USMV has been the lower-risk option at 2.70%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XSLV or USMV?

Over the 10-year period, USMV has performed better with a 9.90% return vs 6.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XSLV or USMV?

USMV is cheaper with a 0.15% expense ratio, compared with 0.25% for XSLV.

Which ETF pays a higher dividend yield, XSLV or USMV?

XSLV has the higher dividend yield at 2.48%, compared with 1.53% for USMV.

What is the main difference between XSLV and USMV?

XSLV is categorized as Volatility Hedged Equity, while USMV is Large Cap Blend Equities. XSLV tracks S&P SmallCap 600 Low Volatility Index, while USMV tracks MSCI USA Minimum Volatility Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.25% for XSLV and 0.15% for USMV.

Which has better risk-adjusted returns?

XSLV currently has the higher Sharpe Ratio (1.17 vs 0.47), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.