The iShares Morningstar Mid-Cap Value ETF (
IMCV Quick Quote IMCV - Free Report) was launched on 06/28/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Value segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $519.50 million, making it one of the average sized 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, companies that fall under this category provide a stable and growth-heavy investment.
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.
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.06%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 2.40%.
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 Financials sector--about 18.60% of the portfolio. Industrials and Utilities round out the top three.
Looking at individual holdings, American International Group Inc (
AIG Quick Quote AIG - Free Report) accounts for about 1.04% of total assets, followed by Paccar Inc ( PCAR Quick Quote PCAR - Free Report) and Capital One Financial Corp ( COF Quick Quote COF - Free Report) .
The top 10 holdings account for about 9.62% of total assets under management.
Performance and Risk
IMCV seeks to match the performance of the MORNINGSTAR US MID CAP BROAD VALUE INDEX before fees and expenses. The Morningstar US Mid Cap Broad Value Index comprises of mid-capitalization U.S. equities that exhibit value characteristics.
The ETF has added about 2.55% so far this year and is up roughly 1.73% in the last one year (as of 09/11/2023). In the past 52-week period, it has traded between $55.94 and $68.24.
The ETF has a beta of 1.10 and standard deviation of 19.43% for the trailing three-year period. With about 326 holdings, it effectively diversifies company-specific risk.
IShares Morningstar Mid-Cap Value ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IMCV is a reasonable option for those seeking exposure to the Style Box - Mid Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell Mid-Cap Value ETF (
IWS Quick Quote IWS - Free Report) and the Vanguard Mid-Cap Value ETF ( VOE Quick Quote VOE - Free Report) track a similar index. While iShares Russell Mid-Cap Value ETF has $12.51 billion in assets, Vanguard Mid-Cap Value ETF has $15.66 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%. Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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.