Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTBen HernandezTue, June 23, 2026 at 8:37 PM GMT+2 5 min readThis article was originally published on ETFTrends.com.With the Nasdaq 100 down about 3% the past week, the technology sector has certainly seen better days. The current sell-off isn't just relegated to the heaviest hitters in the U.S., but also globally. Given this, low-volatility ETFs may seem like the ideal route to seek shelter from the sell-off. However, while two funds may share the same investment thesis, the underlying holdings tell a different story. Such is the case with the Invesco S&P 500 Low Volatility ETF (SPLV) and the iShares MSCI USA Min Vol Factor ETF (USMV).Key TakeawaysThe sector-agnostic SPLV holds less than a 1% weighting in technology, rotating instead into defensive anchors like utilities and financials to shield against tech sell-offs.USMV must match its parent index sector weights, maintaining a 33% footprint in tech that leaves it exposed to performance drag during industry-wide pullbacks.SPLV operates as a purely unconstrained defensive vehicle with an almost perfectly equal-weighted portfolio, while USMV uses optimization rules that create a slightly more top-heavy exposure.See More: The Qs Shift Gears: Nasdaq 100 Rebalances While SpaceX LoomsSPLV: Pure-Play Tactical RefugeWhen tech experiences a patch of market turbulence, it also affects the broader market given its heavy weight in major indexes. The S&P 500 falling 2% the last five trading days is obvious evidence of its influence.When the S&P 500 starts to shake, rattle, and roll, low-volatility stocks could make the ride smoother. In the case of SPLV, it tracks the S&P 500 Low Volatility Index (Index). As its name explicitly says, the Index identifies 100 stocks within the S&P 500 exhibiting the lowest realized volatility over the trailing 12 months. Moreover, the fund is also sector-agnostic so the lack of this constraint means it can sidestep sectors seeing heavy price fluctuations.With this sector-neutral mandate in place, it carries less than a 1% weighting in tech. Instead, the fund rotates its capital into traditional defensive strongholds like utilities, consumer staples, and financials. When tech sells off violently, SPLV acts as somewhat of a defensive shield, warding off the effects of systemic liquidation in mega-cap tech names.USMV: Optimized Minimum VolatilityIn contrast to SPLV, USMV tracks the MSCI USA Minimum Volatility Index. It identifies large- and mid-cap names displaying strong value characteristics according to price-to-book, forward earnings, enterprise value-to-cash flow metrics, and of course, low volatility. Selected constituents are then normalized to match its parent index sector weights.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info