Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the iShares MSCI USA Value Factor ETF (VLUE Quick QuoteVLUE - Free Report) is a passively managed exchange traded fund launched on April 16, 2013.

The fund is sponsored by Blackrock. It has amassed assets over $7.98 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.

Why Large Cap Value

Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.

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. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value 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 0.15%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 2.97%.

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.

This ETF has heaviest allocation to the Information Technology sector -- about 34.7% of the portfolio. Financials and Consumer Discretionary round out the top three.

Looking at individual holdings, Cisco Systems Inc (CSCO) accounts for about 6.5% of total assets, followed by Intel Corporation Corp (INTC) and Micron Technology Inc (MU).

The top 10 holdings account for about 33.37% of total assets under management.

Performance and Risk

VLUE seeks to match the performance of the MSCI USA Enhanced Value Index before fees and expenses. The MSCI USA Enhanced Value Index is based on a traditional market capitalization-weighted parent index, the MSCI USA Index which includes U.S. large and mid capitalization stocks.

The ETF has gained about 18.88% so far this year and is up about 16.82% in the last one year (as of 09/24/2025). In the past 52-week period, it has traded between $93.50 and $123.99.

The ETF has a beta of 0.98 and standard deviation of 16.41% for the trailing three-year period, making it a medium risk choice in the space. With about 150 holdings, it effectively diversifies company-specific risk.

Alternatives

iShares MSCI USA Value Factor 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, VLUE is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.

The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $71.68 billion in assets, Vanguard Value ETF has $147.13 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.

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.