🤝 BFF Take
USMV Wins on Cost and Methodology — SPLV Is Simpler But More Expensive
SPLV (Invesco S&P 500 Low Volatility ETF) and USMV (iShares MSCI USA Min Vol Factor ETF) both target lower-volatility US equity exposure. SPLV simply ranks S&P 500 stocks by their realized volatility over 252 days and selects the 100 least-volatile — weighted by inverse volatility. USMV uses MSCI's optimization model to construct a portfolio that minimizes overall portfolio volatility, accounting for correlations between stocks — not just individual stock volatility. USMV holds ~175 stocks at 0.15%; SPLV holds 100 stocks at 0.25%. USMV's optimization approach is theoretically superior because it considers how stocks move together, not just individually. USMV is also cheaper. Both have historically achieved lower volatility than the S&P 500.
📋 Quick Takeaways
📉USMV optimizes for minimum portfolio volatility using correlations; SPLV simply ranks by individual stock volatility
💰USMV costs 0.15% vs SPLV's 0.25% — USMV is cheaper with a more sophisticated methodology
📊USMV holds ~175 stocks (more diversified); SPLV holds 100 stocks from the S&P 500 only
📊 Data-Based Take: USMV has the lower fee
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
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Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
SPLV
Invesco S&P 500 Low Volatility ETF
USMV
iShares MSCI USA Min Vol Factor ETF
📋 SPLV vs USMV — Key Facts Side by Side
| Metric |
SPLV |
USMV |
| Fund Name |
Invesco S&P 500 Low Volatility ETF |
iShares MSCI USA Min Vol Factor ETF |
| Issuer |
Invesco |
iShares |
| Tracks Index |
S&P 500 Low Volatility |
MSCI USA Minimum Volatility |
| Expense Ratio |
0.25% |
0.15% ✓ |
| Cost per $10K/yr |
$25.00 |
$15.00 |
| AUM |
$8B |
$25B |
| Holdings |
100 |
175 |
| Inception |
2011 |
2011 |
| 1-Year Return |
+12.60% |
+13.40% |
| 3-Year Return |
+7.20% |
+8.10% |
| 5-Year Return |
+9.80% |
+10.60% |
| Avg Bid-Ask Spread |
0.01% |
0.01% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 SPLV vs USMV — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy SPLV or USMV?
Choose if...
SPLV
- You already use Invesco and prefer staying within their fund family
Choose if...
USMV
- You want the lowest fees — saves ~$10/yr per $10K vs SPLV
- You want broader diversification (175 holdings vs 100)
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❓ SPLV vs USMV — Frequently Asked Questions
What is the difference between SPLV and USMV?
SPLV selects the 100 least-volatile S&P 500 stocks based on trailing 252-day historical volatility and weights them by inverse volatility. USMV uses MSCI's portfolio optimization algorithm to build the minimum volatility portfolio — it considers correlations between stocks, not just individual volatility. A portfolio of individually quiet stocks can still be volatile if they all move together; USMV's optimization addresses this.
Do low volatility ETFs protect against market crashes?
Low volatility ETFs typically decline less than the broad market during crashes — their defensive sector tilts (utilities, consumer staples, healthcare) have historically held up better. However, they still fall in serious bear markets. During March 2020, SPLV and USMV both declined significantly, just less than the S&P 500. They are designed for a smoother ride overall, not crash protection.
What sectors do SPLV and USMV favor?
Both tend to overweight defensive sectors: utilities, consumer staples, healthcare, and real estate — sectors with stable revenues and lower price swings. They typically underweight technology, financials, and energy — sectors with higher volatility. This sector tilt means low-vol ETFs can significantly underperform in tech-driven bull markets like 2023-2024.
Is low volatility investing a proven strategy?
The "low volatility anomaly" — the finding that lower-volatility stocks have historically produced better risk-adjusted returns than their risk would imply — is well-documented in academic literature. It challenges traditional finance theory that higher risk requires higher return. However, like all factors, it can underperform for extended periods. Both SPLV and USMV have lagged the S&P 500 in strong bull markets driven by high-volatility tech stocks.
Should I replace my S&P 500 fund with SPLV or USMV?
Most investors should not fully replace S&P 500 exposure with low-volatility ETFs. The smoother ride comes at the cost of lagging during tech bull markets, and the defensive sector concentration creates its own risks. Low-vol ETFs work best as a partial portfolio allocation for investors who genuinely can't stomach significant short-term volatility — not as a full market replacement.
New to ETF investing? See answers to the most common ETF questions →
📄 SPLV & USMV Fact Sheets
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.