Low-Volatility Strategy Is 2025’s Upside Outlier for Equity Factors
Standing alone among US equity factors this year, the low-volatility strategy is holding on to a modest gain year to date. In sharp relief, the rest of the factor field is posting varying degrees of loss, based on a set of ETFs through yesterday’s close (Apr. 15).
The iShares MSCI USA Minimum Volatility Factor ETF (NYSE:) is up 2.7% year to date. By contrast, the US stock market overall () is down 8.0%. All the other factor ETFs are also in the red so far this year.
The deepest factor loss in 2025: small-cap value stocks, which have crashed 18.9%, based on iShares S&P Small-Cap 600 Value ETF (NYSE:).
Although most slices of the US equity market have taken a hit this year, small-cap value’s fall from grace has been unusually harsh….
