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Is iShares Core S&P U.S. Value ETF (IUSV) a Strong ETF Right Now?
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Launched on 07/24/2000, the iShares Core S&P U.S. Value ETF (IUSV - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value category of the market.
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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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
Managed by Blackrock, IUSV has amassed assets over $11.96 billion, making it the largest ETF in the Style Box - All Cap Value. Before fees and expenses, this particular fund 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 the least expensive product in the space.
IUSV's 12-month trailing dividend yield is 1.95%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector - about 16.20% of the portfolio. Financials and Industrials round out the top three.
Looking at individual holdings, Berkshire Hathaway Inc Class B (BRK.B - Free Report) accounts for about 2.94% of total assets, followed by Johnson & Johnson (JNJ - Free Report) and Procter & Gamble (PG - Free Report) .
The top 10 holdings account for about 16.44% of total assets under management.
Performance and Risk
So far this year, IUSV has lost about -2.50%, and was up about 5.12% in the last one year (as of 05/05/2022). During this past 52-week period, the fund has traded between $69.93 and $77.49.
IUSV has a beta of 0.96 and standard deviation of 23.30% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 752 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 $1.26 billion in assets, Dimensional U.S. Targeted Value ETF has $6.90 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?
Launched on 07/24/2000, the iShares Core S&P U.S. Value ETF (IUSV - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value category of the market.
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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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
Managed by Blackrock, IUSV has amassed assets over $11.96 billion, making it the largest ETF in the Style Box - All Cap Value. Before fees and expenses, this particular fund 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 the least expensive product in the space.
IUSV's 12-month trailing dividend yield is 1.95%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector - about 16.20% of the portfolio. Financials and Industrials round out the top three.
Looking at individual holdings, Berkshire Hathaway Inc Class B (BRK.B - Free Report) accounts for about 2.94% of total assets, followed by Johnson & Johnson (JNJ - Free Report) and Procter & Gamble (PG - Free Report) .
The top 10 holdings account for about 16.44% of total assets under management.
Performance and Risk
So far this year, IUSV has lost about -2.50%, and was up about 5.12% in the last one year (as of 05/05/2022). During this past 52-week period, the fund has traded between $69.93 and $77.49.
IUSV has a beta of 0.96 and standard deviation of 23.30% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 752 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 $1.26 billion in assets, Dimensional U.S. Targeted Value ETF has $6.90 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.