Core Viewpoint - The iShares MSCI USA Min Vol Factor ETF (USMV) is a significant player in the Large Cap Blend segment of the US equity market, with over $23.81 billion in assets, making it one of the largest ETFs in this category [1]. Group 1: Fund Overview - USMV is a passively managed ETF launched on October 18, 2011, and is sponsored by Blackrock [1]. - The fund targets large cap companies, typically with market capitalizations above $10 billion, offering stability and reliable cash flows compared to mid and small cap companies [2]. Group 2: Costs and Performance - The ETF has an annual operating expense ratio of 0.15%, positioning it as a cost-effective option in the market [3]. - It has a 12-month trailing dividend yield of 1.57% [3]. - USMV has increased by approximately 6.30% year-to-date and is up about 13.33% over the past year, with a trading range between $84.95 and $94.57 in the last 52 weeks [6]. Group 3: Sector Exposure and Holdings - The ETF has a significant allocation of about 27.30% to the Information Technology sector, followed by Financials and Healthcare [4]. - International Business Machines Co (IBM) constitutes around 1.60% of total assets, with the top 10 holdings making up about 15.26% of total assets under management [5]. Group 4: Risk Profile - USMV aims to match the performance of the MSCI USA Minimum Volatility Index, which includes U.S. equities with lower volatility characteristics [6]. - The ETF has a beta of 0.70 and a standard deviation of 12.27% over the trailing three-year period, indicating a medium risk profile [7]. Group 5: Alternatives - USMV holds a Zacks ETF Rank of 2 (Buy), indicating favorable expected returns and momentum [8]. - Other comparable ETFs include the SPDR S&P 500 ETF (SPY) and the Vanguard S&P 500 ETF (VOO), with assets of $641.52 billion and $688.84 billion respectively, and lower expense ratios of 0.09% for SPY and 0.03% for VOO [9]. Group 6: Market Trends - There is a growing trend among retail and institutional investors towards passively managed ETFs due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [10].

Core Insights - The Vanguard Mega Cap ETF (MGC) is a passively managed ETF launched on December 17, 2007, with over $7.33 billion in assets, focusing on the Large Cap Blend segment of the US equity market [1] Group 1: Large Cap Blend Overview - Companies in the large cap category typically have a market capitalization above $10 billion, offering stability with less risk and more reliable cash flows compared to mid and small cap companies [2] - Blend ETFs hold a combination of growth and value stocks, exhibiting characteristics of both investment styles [2] Group 2: Cost Structure - MGC has an annual operating expense ratio of 0.07%, making it one of the least expensive ETFs in its category [3] - The ETF has a 12-month trailing dividend yield of 1.06% [3] Group 3: Sector Exposure and Holdings - The ETF has a significant allocation of approximately 37.40% to the Information Technology sector, followed by Financials and Telecom [4] - Microsoft Corp (MSFT) constitutes about 8.17% of total assets, with Nvidia Corp (NVDA) and Apple Inc (AAPL) also among the top holdings; the top 10 holdings represent about 40.34% of total assets [5] Group 4: Performance Metrics - MGC aims to match the performance of the CRSP US Mega Cap Index, which includes the largest U.S. companies, targeting the top 70% of investable market capitalization [6] - The ETF has gained approximately 7.18% year-to-date and around 13.25% over the past year, with a trading range between $179.23 and $227.39 in the last 52 weeks [6] Group 5: Risk Assessment - MGC has a beta of 1.01 and a standard deviation of 17.37% over the trailing three-year period, categorizing it as a medium risk investment [7] - The ETF holds about 191 securities, effectively diversifying company-specific risk [7] Group 6: Alternatives and Market Position - MGC holds a Zacks ETF Rank of 2 (Buy), indicating strong expected returns based on various factors [8] - Other ETFs in the same space include the SPDR S&P 500 ETF (SPY) with $641.52 billion in assets and the Vanguard S&P 500 ETF (VOO) with $688.84 billion, with expense ratios of 0.09% and 0.03% respectively [9] Group 7: Investment Trends - There is a growing trend among retail and institutional investors towards passively managed ETFs due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [10]