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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 $13.22 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, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
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 1.60%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 18.30% of the portfolio. Industrials and Real Estate round out the top three.
Looking at individual holdings, Arthur J Gallagher (AJG - Free Report) accounts for about 0.90% of total assets, followed by Williams Inc (WMB - Free Report) and Bank Of New York Mellon Corp (BK - Free Report) .
The top 10 holdings account for about 6.7% 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 lost about -2.92% so far this year and is up roughly 1.42% in the last one year (as of 03/31/2025). In the past 52-week period, it has traded between $117.31 and $140.32.
The ETF has a beta of 1.11 and standard deviation of 17.33% for the trailing three-year period, making it a medium risk choice in the space. With about 717 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Mid-Cap Value ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWS is an excellent 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 First Trust SMID Cap Rising Dividend Achievers ETF (SDVY - Free Report) and the Vanguard Mid-Cap Value ETF (VOE - Free Report) track a similar index. While First Trust SMID Cap Rising Dividend Achievers ETF has $7.80 billion in assets, Vanguard Mid-Cap Value ETF has $17.17 billion. SDVY has an expense ratio of 0.59% 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.
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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 $13.22 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, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
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 1.60%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 18.30% of the portfolio. Industrials and Real Estate round out the top three.
Looking at individual holdings, Arthur J Gallagher (AJG - Free Report) accounts for about 0.90% of total assets, followed by Williams Inc (WMB - Free Report) and Bank Of New York Mellon Corp (BK - Free Report) .
The top 10 holdings account for about 6.7% 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 lost about -2.92% so far this year and is up roughly 1.42% in the last one year (as of 03/31/2025). In the past 52-week period, it has traded between $117.31 and $140.32.
The ETF has a beta of 1.11 and standard deviation of 17.33% for the trailing three-year period, making it a medium risk choice in the space. With about 717 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Mid-Cap Value ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWS is an excellent 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 First Trust SMID Cap Rising Dividend Achievers ETF (SDVY - Free Report) and the Vanguard Mid-Cap Value ETF (VOE - Free Report) track a similar index. While First Trust SMID Cap Rising Dividend Achievers ETF has $7.80 billion in assets, Vanguard Mid-Cap Value ETF has $17.17 billion. SDVY has an expense ratio of 0.59% 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.