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Should iShares Russell MidCap Value ETF (IWS) Be on Your Investing Radar?
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Designed to provide broad exposure to the Mid Cap Value segment of the US equity market, the iShares Russell MidCap Value ETF (IWS - Free Report) is a passively managed exchange traded fund launched on 07/17/2001.
The fund is sponsored by Blackrock. It has amassed assets over $14.55 billion, making it one of the largest ETFs attempting to match the Mid Cap Value segment of the US equity market.
Why Mid Cap Value
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. These types of companies, then, have a good balance of stability and growth potential.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.23%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.47%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 16.70% of the portfolio. Industrials and Real Estate round out the top three.
Looking at individual holdings, Marvell Technology Inc (MRVL - Free Report) accounts for about 0.76% of total assets, followed by Ihs Markit Ltd and Marathon Petroleum Corp (MPC - Free Report) .
Performance and Risk
IWS seeks to match the performance of the Russell MidCap Value Index before fees and expenses. The Russell Midcap Value Index measures the performance of the mid-capitalization value sector of the U.S. equity market.
The ETF has lost about -5.28% so far this year and was up about 16.77% in the last one year (as of 01/25/2022). In the past 52-week period, it has traded between $96.73 and $123.59.
The ETF has a beta of 1.13 and standard deviation of 25.72% for the trailing three-year period, making it a medium risk choice in the space. With about 705 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell MidCap Value ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWS is a great option for investors seeking exposure to the Style Box - Mid Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares S&P MidCap 400 Value ETF (IJJ - Free Report) and the Vanguard MidCap Value ETF (VOE - Free Report) track a similar index. While iShares S&P MidCap 400 Value ETF has $8.55 billion in assets, Vanguard MidCap Value ETF has $15.48 billion. IJJ has an expense ratio of 0.18% and VOE charges 0.07%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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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Should iShares Russell MidCap Value ETF (IWS) Be on Your Investing Radar?
Designed to provide broad exposure to the Mid Cap Value segment of the US equity market, the iShares Russell MidCap Value ETF (IWS - Free Report) is a passively managed exchange traded fund launched on 07/17/2001.
The fund is sponsored by Blackrock. It has amassed assets over $14.55 billion, making it one of the largest ETFs attempting to match the Mid Cap Value segment of the US equity market.
Why Mid Cap Value
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. These types of companies, then, have a good balance of stability and growth potential.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.23%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.47%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 16.70% of the portfolio. Industrials and Real Estate round out the top three.
Looking at individual holdings, Marvell Technology Inc (MRVL - Free Report) accounts for about 0.76% of total assets, followed by Ihs Markit Ltd and Marathon Petroleum Corp (MPC - Free Report) .
Performance and Risk
IWS seeks to match the performance of the Russell MidCap Value Index before fees and expenses. The Russell Midcap Value Index measures the performance of the mid-capitalization value sector of the U.S. equity market.
The ETF has lost about -5.28% so far this year and was up about 16.77% in the last one year (as of 01/25/2022). In the past 52-week period, it has traded between $96.73 and $123.59.
The ETF has a beta of 1.13 and standard deviation of 25.72% for the trailing three-year period, making it a medium risk choice in the space. With about 705 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell MidCap Value ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWS is a great option for investors seeking exposure to the Style Box - Mid Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares S&P MidCap 400 Value ETF (IJJ - Free Report) and the Vanguard MidCap Value ETF (VOE - Free Report) track a similar index. While iShares S&P MidCap 400 Value ETF has $8.55 billion in assets, Vanguard MidCap Value ETF has $15.48 billion. IJJ has an expense ratio of 0.18% and VOE charges 0.07%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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.