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Should iShares Russell Mid-Cap Value ETF (IWS) Be on Your Investing Radar?
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Looking for broad exposure to the Mid Cap Value segment of the US equity market? You should consider the iShares Russell Mid-Cap Value ETF (IWS - Free Report) , a passively managed exchange traded fund launched on 07/17/2001.
The fund is sponsored by Blackrock. It has amassed assets over $12.95 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. Thus they have a nice balance of growth potential and stability.
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. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
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 counterparts, other things remaining 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 1.86%.
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 to the Industrials sector--about 18.80% of the portfolio. Financials and Real Estate round out the top three.
Looking at individual holdings, Parker-Hannifin Corp (PH - Free Report) accounts for about 0.75% of total assets, followed by Marvell Technology Inc (MRVL - Free Report) and Phillips (PSX - Free Report) .
The top 10 holdings account for about 6.47% 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 about 6.45% so far this year and is up roughly 6.88% in the last one year (as of 09/05/2023). In the past 52-week period, it has traded between $96.05 and $116.23.
The ETF has a beta of 1.10 and standard deviation of 18.99% for the trailing three-year period, making it a medium risk choice in the space. With about 706 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 an outstanding 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 $7.19 billion in assets, Vanguard Mid-Cap Value ETF has $15.99 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?
Looking for broad exposure to the Mid Cap Value segment of the US equity market? You should consider the iShares Russell Mid-Cap Value ETF (IWS - Free Report) , a passively managed exchange traded fund launched on 07/17/2001.
The fund is sponsored by Blackrock. It has amassed assets over $12.95 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. Thus they have a nice balance of growth potential and stability.
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. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
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 counterparts, other things remaining 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 1.86%.
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 to the Industrials sector--about 18.80% of the portfolio. Financials and Real Estate round out the top three.
Looking at individual holdings, Parker-Hannifin Corp (PH - Free Report) accounts for about 0.75% of total assets, followed by Marvell Technology Inc (MRVL - Free Report) and Phillips (PSX - Free Report) .
The top 10 holdings account for about 6.47% 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 about 6.45% so far this year and is up roughly 6.88% in the last one year (as of 09/05/2023). In the past 52-week period, it has traded between $96.05 and $116.23.
The ETF has a beta of 1.10 and standard deviation of 18.99% for the trailing three-year period, making it a medium risk choice in the space. With about 706 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 an outstanding 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 $7.19 billion in assets, Vanguard Mid-Cap Value ETF has $15.99 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.