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Is iShares Core S&P U.S. Value ETF (IUSV) a Strong ETF Right Now?
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A smart beta exchange traded fund, the iShares Core S&P U.S. Value ETF (IUSV - Free Report) debuted on 07/24/2000, and offers broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Blackrock. IUSV has been able to amass assets over $11.76 billion, making it the largest ETF in the Style Box - All Cap Value. This particular fund seeks to match the performance of the S&P 900 Value Index before fees and expenses.
The S&P 900 Value Index measures the performance of the large and mid-capitalization value sector of the U.S. equity market.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for IUSV are 0.04%, which makes it the least expensive product in the space.
IUSV's 12-month trailing dividend yield is 1.92%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
IUSV's heaviest allocation is in the Financials sector, which is about 20.60% of the portfolio. Its Healthcare and Industrials round out the top three.
Taking into account individual holdings, Berkshire Hathaway Inc Class B (BRK.B - Free Report) accounts for about 2.78% of the fund's total assets, followed by Jpmorgan Chase & Co (JPM - Free Report) and Bank Of America Corp (BAC - Free Report) .
Its top 10 holdings account for approximately 2.78% of IUSV's total assets under management.
Performance and Risk
The ETF has lost about -3.12% and is up about 14.17% so far this year and in the past one year (as of 03/04/2022), respectively. IUSV has traded between $67.06 and $77.49 during this last 52-week period.
The ETF has a beta of 0.99 and standard deviation of 23.01% for the trailing three-year period, making it a medium risk choice in the space. With about 746 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P U.S. Value ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Fidelity High Dividend ETF (FDVV - Free Report) tracks Fidelity Core Dividend Index and the Dimensional U.S. Targeted Value ETF (DFAT - Free Report) tracks ----------------------------------------. Fidelity High Dividend ETF has $1.13 billion in assets, Dimensional U.S. Targeted Value ETF has $6.96 billion. FDVV has an expense ratio of 0.29% and DFAT charges 0.34%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is iShares Core S&P U.S. Value ETF (IUSV) a Strong ETF Right Now?
A smart beta exchange traded fund, the iShares Core S&P U.S. Value ETF (IUSV - Free Report) debuted on 07/24/2000, and offers broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Blackrock. IUSV has been able to amass assets over $11.76 billion, making it the largest ETF in the Style Box - All Cap Value. This particular fund seeks to match the performance of the S&P 900 Value Index before fees and expenses.
The S&P 900 Value Index measures the performance of the large and mid-capitalization value sector of the U.S. equity market.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for IUSV are 0.04%, which makes it the least expensive product in the space.
IUSV's 12-month trailing dividend yield is 1.92%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
IUSV's heaviest allocation is in the Financials sector, which is about 20.60% of the portfolio. Its Healthcare and Industrials round out the top three.
Taking into account individual holdings, Berkshire Hathaway Inc Class B (BRK.B - Free Report) accounts for about 2.78% of the fund's total assets, followed by Jpmorgan Chase & Co (JPM - Free Report) and Bank Of America Corp (BAC - Free Report) .
Its top 10 holdings account for approximately 2.78% of IUSV's total assets under management.
Performance and Risk
The ETF has lost about -3.12% and is up about 14.17% so far this year and in the past one year (as of 03/04/2022), respectively. IUSV has traded between $67.06 and $77.49 during this last 52-week period.
The ETF has a beta of 0.99 and standard deviation of 23.01% for the trailing three-year period, making it a medium risk choice in the space. With about 746 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P U.S. Value ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Fidelity High Dividend ETF (FDVV - Free Report) tracks Fidelity Core Dividend Index and the Dimensional U.S. Targeted Value ETF (DFAT - Free Report) tracks ----------------------------------------. Fidelity High Dividend ETF has $1.13 billion in assets, Dimensional U.S. Targeted Value ETF has $6.96 billion. FDVV has an expense ratio of 0.29% and DFAT charges 0.34%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.