iShares MSCI Min Vol USA Index ETF (XMU.TO) seeks to provide long-term capital growth by replicating the performance of the MSCI USA Minimum Volatility Index (USD). This exposure is also available hedged to the Canadian dollar in XMS.
An Exchange Traded Fund (ETF) is a collection of dozens, hundreds or thousands of stocks or bonds in a single fund that trades on major stock exchanges. ETFs combine the diversification of mutual funds with lower investment minimum and real-time pricing.
XMU ETF Review
Under normal market conditions, the ETF will primarily invest in U.S. equity securities. The Index measures the performance of equity securities in the top 85% by market capitalization of equity securities listed on stock exchanges in the United States. The Index aims to reflect the performance characteristics of a minimum volatility strategy applied to the large and mid-capitalization securities in the MSCI USA Index. The eligible universe of securities is taken from the MSCI USA Index, which is a free-float adjusted market capitalization-weighted index, and then MSCI, Inc. follows a rules-based methodology to determine optimal weights for securities in the Index to seek to minimize the total risk of the Index while applying sector weight constraints. The Index is optimized in U.S. dollars and reported in Canadian dollars.
- Tracks an index which measures the performance of U.S. equities that have lower volatility relative to the equities included in the MSCI USA Index
- Minimum volatility strategies have historically reduced losses during market declines, while still capturing gains in rising markets
- By seeking to smooth out the market’s ups and downs, the fund can help you stay invested for the long term
Top 10 XMU Holdings
| Ticker | Name | Weight |
|---|---|---|
| AVGO | Broadcom Inc. | 2.08% |
| IBM | International Business Machines Corporation | 1.75% |
| MRK | Merck & Co., Inc. | 1.66% |
| VZ | Verizon Communications Inc. | 1.56% |
| TMUS | T-Mobile US, Inc. | 1.55% |
| WCN | Waste Connections, Inc. | 1.55% |
| ACN | Accenture plc | 1.55% |
| CSCO | Cisco Systems Inc | 1.54% |
| WM | Waste Management, Inc. | 1.53% |
| MSFT | Microsoft Corporation | 1.52% |
| Ticker | Name | Weight |
What is the Best US Low Volatility ETF in Canada?
- CQLU.NE: CIBC Qx U.S. Low Volatility Dividend ETF
- FCLH.TO: Fidelity U.S. Low Volatility Currency Neutral ETF
- FCUL.TO: Fidelity U.S. Low Volatility ETF
- TULV.TO: TD Q U.S. Low Volatility ETF
- ULV-C.TO: Invesco S&P 500 Low Volatility Index ETF
- ULV-F.TO: Invesco S&P 500 Low Volatility Index ETF
- XMS.TO: iShares MSCI Min Vol USA Index ETF (CAD-Hedged)
- XMU.TO: iShares MSCI Min Vol USA Index ETF
- ZLH.TO: BMO Low Volatility US Equity Hedged to CAD ETF
- ZLU.TO: BMO Low Volatility US Equity ETF
Here is a table comparing XMU to similar low volatility ETFs in Canada as of December 31, 2023.
| Manager | ETF | Inception | MER | AUM | Yield | Distributions | 1Y | 3Y | 5Y | 10Y |
|---|---|---|---|---|---|---|---|---|---|---|
 | XMS | 2016-04-05 | 0.33% | $39,908,199 | 1.40% | Quarterly | 7.87% | 5.30% | 8.55% | N/A |
| XMU | 2012-07-24 | 0.33% | $353,124,920 | 1.41% | Quarterly | 6.68% | 7.19% | 8.96% | 12.12% |
 | ZLH | 2016-02-10 | 0.33% | $87,870,000 | 2.44% | Quarterly | -2.63% | 5.99% | 8.81% | N/A |
| ZLU | 2013-03-19 | 0.33% | $1,480,070,000 | 2.39% | Quarterly | -3.25% | 8.02% | 9.16% | 12.28% |
 | CQLU | 2021-11-16 | 0.34% | $1,497,520 | 2.03% | Quarterly | -3.95% | N/A | N/A | N/A |
 | FCLH | 2019-01-18 | 0.42% | $6,100,000 | 1.29% | Quarterly | 11.13% | 8.47% | N/A | N/A |
| FCUL | 2019-01-18 | 0.39% | $128,100,000 | 1.32% | Quarterly | 10.61% | 9.94% | N/A | N/A |
 | ULV.C | 2017-01-12 | 0.31% | $24,296,634 | 2.11% | Monthly | -2.63% | 6.71% | 6.24% | N/A |
| ULV.F | 2012-01-10 | 0.30% | $102,854,374 | 2.08% | Monthly | -0.92% | 4.60% | 7.01% | 7.74% |
 | TULV | 2020-05-26 | 0.34% | $50,960,000 | 1.95% | Quarterly | -3.52% | 6.81% | N/A | N/A |
| Manager | ETF | Inception | MER | AUM | Yield | Distributions | 1Y | 3Y | 5Y | 10Y |
 |  |  |  |  |  |
|---|---|---|---|---|---|
| Advice | InvestCAN | InvestRESP | InvestUSA | RetireCAN | RetireMGN |
| $500.00 CAD $400.00 USD | $99.99 CAD | $79.99 USD | $99.99 CAD | $12.99 CAD $9.99 USD |
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