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Each factor fund has a mandate like any other kind of fund. For example, the iShares MSCI USA Momentum Factor ETF (MTUM) gives you exposure to US stocks demonstrating relatively high price momentum.
Factor funds include the iShares MSCI USA Value Factor ETF (VLUE), the iShares MSCI USA Quality Factor ETF (QUAL), and the iShares MSCI USA Size Factor ETF (SIZE).
While the minimum volatility indices limit the downside returns of their standard index counterparts, they also capture a good chunk on the upside.
The volatility index or the VIX is often called a “fear gauge.” The higher the index level, the riskier investors perceive the stock markets to be.