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Is iShares MSCI USA Value Factor ETF (VLUE) a Strong ETF Right Now?
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Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the iShares MSCI USA Value Factor ETF (VLUE - Free Report) is a smart beta exchange traded fund launched on 04/16/2013.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Blackrock. VLUE has been able to amass assets over $9.73 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. VLUE, before fees and expenses, seeks to match the performance of the MSCI USA Enhanced Value Index.
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.
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.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.15%.
VLUE's 12-month trailing dividend yield is 2.01%.
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 in the Information Technology sector - about 37% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Micron Technology Inc (MU) accounts for about 6.46% of total assets, followed by Cisco Systems Inc (CSCO) and Intel Corporation Corp (INTC).
The top 10 holdings account for about 36.42% of total assets under management.
Performance and Risk
The ETF return is roughly 5.09% and it's up approximately 37.22% so far this year and in the past one year (as of 01/15/2026), respectively. VLUE has traded between $93.50 and $144.24 during this last 52-week period.
The fund has a beta of 0.95 and standard deviation of 15.50% for the trailing three-year period, which makes VLUE a medium risk choice in this particular space. With about 154 holdings, it effectively diversifies company-specific risk .
Alternatives
iShares MSCI USA Value Factor ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $75.81 billion in assets, Vanguard Value ETF has $162.84 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.04%.
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 - Large 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 MSCI USA Value Factor ETF (VLUE) a Strong ETF Right Now?
Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the iShares MSCI USA Value Factor ETF (VLUE - Free Report) is a smart beta exchange traded fund launched on 04/16/2013.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Blackrock. VLUE has been able to amass assets over $9.73 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. VLUE, before fees and expenses, seeks to match the performance of the MSCI USA Enhanced Value Index.
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.
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.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.15%.
VLUE's 12-month trailing dividend yield is 2.01%.
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 in the Information Technology sector - about 37% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Micron Technology Inc (MU) accounts for about 6.46% of total assets, followed by Cisco Systems Inc (CSCO) and Intel Corporation Corp (INTC).
The top 10 holdings account for about 36.42% of total assets under management.
Performance and Risk
The ETF return is roughly 5.09% and it's up approximately 37.22% so far this year and in the past one year (as of 01/15/2026), respectively. VLUE has traded between $93.50 and $144.24 during this last 52-week period.
The fund has a beta of 0.95 and standard deviation of 15.50% for the trailing three-year period, which makes VLUE a medium risk choice in this particular space. With about 154 holdings, it effectively diversifies company-specific risk .
Alternatives
iShares MSCI USA Value Factor ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $75.81 billion in assets, Vanguard Value ETF has $162.84 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.04%.
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 - Large 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.