What if you invested monthly in a Minimum-volatility ETF (USMV) for 10 years?
This calculates the result of investing a fixed amount monthly into USMV, designed to lower overall portfolio volatility through a mix of lower-volatility stocks, over 10 years using actual price data. It shows the drawdown-cushioning effect alongside maximum drawdown and time underwater.
Investment conditions
Asset · USMV (US Minimum-volatility ETF)
Method · Recurring monthly investment
Period · 2016-07-01 ~ 2026-07-01
Amount · $222 / month
As of · 2026-07-01
Key metrics
These results do not reflect taxes. Based on historical data.
Risk & recovery
As important as returns. This service does not hide maximum drawdown or loss periods.
Maximum drawdown (MDD)
-31.9%
Largest drop from peak
Longest loss period
4months
Months in loss: 4
Recovery period
3months
Growth over time
Invested principal (dashed) and portfolio value (solid). Values below match the calculation.
Total invested $26,889 → Final value $43,479 (+61.7%), Maximum drawdown (MDD) -31.9%
Why this period and asset
The low-volatility factor stems from the 'low-volatility anomaly,' where lower-volatility stocks delivered better risk-adjusted results than theory predicts. USMV combines US stocks considering not just individual volatility but also correlations between holdings so that whole-portfolio volatility is minimized. This 10-year window (2016-2026) includes the late-2018 selloff, the 2020 COVID crash, and the 2022 correction; drawdowns were sometimes shallower than the broad index in sharp declines, but it also lagged in rallies.
Interpreting the result
Investing the same amount each month buys more shares when prices are low and fewer when they are high. A minimum-volatility strategy aims to reduce drawdowns themselves, so maximum drawdown tends to be shallower and recovery faster in crises, yet it is not full protection; when the market falls sharply it still endures loss periods and delayed recovery. In strong rallies it may rise less than the broad index as a trade-off. The key is to read the maximum drawdown, time underwater, and recovery period next to the broad index on the results screen.
Caveats & limits
Even a low-volatility tilt cannot avoid losses in a broad market crash, and in rising-rate regimes dividend- and defensive-heavy low-vol names can fare worse. Backtest results shrink once real fees, turnover, and taxes are included, and expense ratios, trading fees, USD/KRW exchange rates, and taxes also affect the outcome. Past performance does not guarantee future results, and this page does not recommend buying any specific security.
Data sources & limits
- Price data source: Yahoo Finance / FinanceDataReader
- Collected on: 2026-07-23
- Effective trading date: 2026-07-01
- Price basis: 复权收盘价(已反映股息与拆股)
- Trading fees and taxes are not reflected — figures are pre-tax.
- Based on historical data; does not guarantee future returns.
Frequently asked questions
What is factor investing?
Instead of holding the whole market, it selects stocks by a specific characteristic (factor) such as low volatility, value, or momentum. It is a smart-beta approach that follows, by rules, patterns observed in academic research.
Does the low-volatility factor always beat the market?
No. Drawdowns were sometimes shallower in sharp selloffs, but it rises less than the market in strong rallies. It trades away some upside in exchange for lower volatility.
What are the risks of this strategy?
It is not full downside protection, it can be left behind in rallies, and it may fare worse in rising-rate periods. In a broad crash it still endures loss periods and delayed recovery, and fees and FX reduce returns.
Related scenarios
📋 结果基于历史数据计算,过去的收益不代表未来的收益。
📋 本服务旨在帮助理解投资、供教育之用,并非投资建议。