(SMMV) iShares MSCI USA Small-Cap - Ratings and Ratios

The iShares MSCI USA Small-Cap Min Vol Factor ETF (BATS:SMMV) is designed to track the performance of small-cap US equities with lower volatility characteristics. The fund invests at least 80% of its assets in the component securities of its underlying index, which is developed by MSCI Inc. to measure the performance of small-cap US equities with lower volatility.

From a portfolio perspective, SMMVs focus on minimizing volatility makes it an attractive option for investors seeking to reduce their exposure to market fluctuations. Key performance indicators (KPIs) to monitor for this ETF include its tracking error relative to its underlying index, as well as its expense ratio, which is likely to be around 0.20% given its category. Additionally, investors should consider the ETFs dividend yield, which is likely to be around 2-3% given its small-cap blend category, and its turnover rate, which may impact its tax efficiency.

In terms of its investment strategy, SMMVs focus on small-cap US equities with lower volatility characteristics means that it is likely to be overweight in sectors such as consumer staples, healthcare, and utilities, which tend to be less volatile than other sectors. Investors should also be aware of the ETFs potential biases, such as its potential for value or size tilts, which may impact its performance relative to the broader small-cap US equity market.

To evaluate SMMVs performance, investors can monitor its returns relative to its underlying index, as well as its Sharpe ratio, which measures its risk-adjusted returns. A Sharpe ratio above 1 is generally considered good, indicating that the ETF is generating excess returns relative to its risk. Other KPIs to monitor include its beta, which measures its systematic risk, and its standard deviation, which measures its total risk.