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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?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Blackrock. IUSV has been able to amass assets over $13.38 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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining 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 2.12%.
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.
Representing 16.30% of the portfolio, the fund has heaviest allocation to the Healthcare sector; Financials and Industrials round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT - Free Report) accounts for about 4.28% of total assets, followed by Berkshire Hathaway Inc Class B (BRK.B - Free Report) and Amazon Com Inc (AMZN - Free Report) .
The top 10 holdings account for about 20.08% of total assets under management.
Performance and Risk
The ETF has added roughly 4.93% so far this year and is down about -2.31% in the last one year (as of 01/12/2023). In the past 52-week period, it has traded between $62.61 and $77.38.
The ETF has a beta of 0.95 and standard deviation of 24.43% for the trailing three-year period, making it a medium risk choice in the space. With about 712 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.
Invesco High Yield Equity Dividend Achievers ETF (PEY - Free Report) tracks NASDAQ US Dividend Achievers 50 Index and the Dimensional U.S. Targeted Value ETF (DFAT - Free Report) tracks ----------------------------------------. Invesco High Yield Equity Dividend Achievers ETF has $1.59 billion in assets, Dimensional U.S. Targeted Value ETF has $7.77 billion. PEY has an expense ratio of 0.52% and DFAT charges 0.29%.
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?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Blackrock. IUSV has been able to amass assets over $13.38 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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining 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 2.12%.
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.
Representing 16.30% of the portfolio, the fund has heaviest allocation to the Healthcare sector; Financials and Industrials round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT - Free Report) accounts for about 4.28% of total assets, followed by Berkshire Hathaway Inc Class B (BRK.B - Free Report) and Amazon Com Inc (AMZN - Free Report) .
The top 10 holdings account for about 20.08% of total assets under management.
Performance and Risk
The ETF has added roughly 4.93% so far this year and is down about -2.31% in the last one year (as of 01/12/2023). In the past 52-week period, it has traded between $62.61 and $77.38.
The ETF has a beta of 0.95 and standard deviation of 24.43% for the trailing three-year period, making it a medium risk choice in the space. With about 712 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.
Invesco High Yield Equity Dividend Achievers ETF (PEY - Free Report) tracks NASDAQ US Dividend Achievers 50 Index and the Dimensional U.S. Targeted Value ETF (DFAT - Free Report) tracks ----------------------------------------. Invesco High Yield Equity Dividend Achievers ETF has $1.59 billion in assets, Dimensional U.S. Targeted Value ETF has $7.77 billion. PEY has an expense ratio of 0.52% and DFAT charges 0.29%.
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.