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Should iShares Russell Mid-Cap Value ETF (IWS) Be on Your Investing Radar?
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Launched on 07/17/2001, the iShares Russell Mid-Cap Value ETF (IWS - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Value segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $12.47 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
Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. Thus they have a nice balance of growth potential and stability.
While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
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 1.92%.
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.
This ETF has heaviest allocation to the Industrials sector--about 17.80% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Motorola Solutions Inc (MSI - Free Report) accounts for about 0.78% of total assets, followed by Phillips 66 (PSX - Free Report) and Corteva Inc (CTVA - Free Report) .
The top 10 holdings account for about 6.64% of total assets under management.
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 added roughly 2.86% so far this year and is up about 6.52% in the last one year (as of 06/15/2023). In the past 52-week period, it has traded between $96.05 and $116.23.
The ETF has a beta of 1.09 and standard deviation of 19.38% for the trailing three-year period, making it a medium risk choice in the space. With about 701 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Mid-Cap 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 Mid-Cap 400 Value ETF (IJJ - Free Report) and the Vanguard Mid-Cap Value ETF (VOE - Free Report) track a similar index. While iShares S&P Mid-Cap 400 Value ETF has $7.13 billion in assets, Vanguard Mid-Cap Value ETF has $15.97 billion. IJJ has an expense ratio of 0.18% and VOE charges 0.07%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
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 Mid-Cap Value ETF (IWS) Be on Your Investing Radar?
Launched on 07/17/2001, the iShares Russell Mid-Cap Value ETF (IWS - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Value segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $12.47 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
Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. Thus they have a nice balance of growth potential and stability.
While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
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 1.92%.
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.
This ETF has heaviest allocation to the Industrials sector--about 17.80% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Motorola Solutions Inc (MSI - Free Report) accounts for about 0.78% of total assets, followed by Phillips 66 (PSX - Free Report) and Corteva Inc (CTVA - Free Report) .
The top 10 holdings account for about 6.64% of total assets under management.
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 added roughly 2.86% so far this year and is up about 6.52% in the last one year (as of 06/15/2023). In the past 52-week period, it has traded between $96.05 and $116.23.
The ETF has a beta of 1.09 and standard deviation of 19.38% for the trailing three-year period, making it a medium risk choice in the space. With about 701 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Mid-Cap 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 Mid-Cap 400 Value ETF (IJJ - Free Report) and the Vanguard Mid-Cap Value ETF (VOE - Free Report) track a similar index. While iShares S&P Mid-Cap 400 Value ETF has $7.13 billion in assets, Vanguard Mid-Cap Value ETF has $15.97 billion. IJJ has an expense ratio of 0.18% and VOE charges 0.07%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
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.