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Is iShares Core S&P U.S. Value ETF (IUSV) a Strong ETF Right Now?
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Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the iShares Core S&P U.S. Value ETF (IUSV - Free Report) is a smart beta exchange traded fund launched on 07/24/2000.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by Blackrock, and has been able to amass over $19.23 billion, which makes it the largest ETF in the Style Box - All Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the S&P 900 Value Index.
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 one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.96%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
For IUSV, it has heaviest allocation in the Financials sector --about 23.30% of the portfolio --while Healthcare and Industrials round out the top three.
When you look at individual holdings, Berkshire Hathaway Inc Class B (BRK.B - Free Report) accounts for about 3.90% of the fund's total assets, followed by Jpmorgan Chase & Co (JPM - Free Report) and Exxon Mobil Corp (XOM - Free Report) .
Its top 10 holdings account for approximately 18.49% of IUSV's total assets under management.
Performance and Risk
The ETF return is roughly 13.95% so far this year and was up about 30.02% in the last one year (as of 10/09/2024). In the past 52-week period, it has traded between $71.48 and $95.49.
IUSV has a beta of 0.94 and standard deviation of 14.92% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 736 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.
Dimensional U.S. Targeted Value ETF (DFAT - Free Report) tracks ---------------------------------------- and the Capital Group Dividend Value ETF (CGDV - Free Report) tracks ----------------------------------------. Dimensional U.S. Targeted Value ETF has $10.38 billion in assets, Capital Group Dividend Value ETF has $11.01 billion. DFAT has an expense ratio of 0.28% and CGDV charges 0.33%.
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?
Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the iShares Core S&P U.S. Value ETF (IUSV - Free Report) is a smart beta exchange traded fund launched on 07/24/2000.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by Blackrock, and has been able to amass over $19.23 billion, which makes it the largest ETF in the Style Box - All Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the S&P 900 Value Index.
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 one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.96%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
For IUSV, it has heaviest allocation in the Financials sector --about 23.30% of the portfolio --while Healthcare and Industrials round out the top three.
When you look at individual holdings, Berkshire Hathaway Inc Class B (BRK.B - Free Report) accounts for about 3.90% of the fund's total assets, followed by Jpmorgan Chase & Co (JPM - Free Report) and Exxon Mobil Corp (XOM - Free Report) .
Its top 10 holdings account for approximately 18.49% of IUSV's total assets under management.
Performance and Risk
The ETF return is roughly 13.95% so far this year and was up about 30.02% in the last one year (as of 10/09/2024). In the past 52-week period, it has traded between $71.48 and $95.49.
IUSV has a beta of 0.94 and standard deviation of 14.92% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 736 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.
Dimensional U.S. Targeted Value ETF (DFAT - Free Report) tracks ---------------------------------------- and the Capital Group Dividend Value ETF (CGDV - Free Report) tracks ----------------------------------------. Dimensional U.S. Targeted Value ETF has $10.38 billion in assets, Capital Group Dividend Value ETF has $11.01 billion. DFAT has an expense ratio of 0.28% and CGDV charges 0.33%.
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.