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Is iShares U.S. Equity Factor ETF (LRGF) a Strong ETF Right Now?
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The iShares U.S. Equity Factor ETF (LRGF - Free Report) was launched on 04/28/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $3.71 billion, this makes it one of the largest ETFs in the Style Box - All Cap Value. LRGF is managed by Blackrock. Before fees and expenses, LRGF seeks to match the performance of the MSCI USA Diversified Multiple-Factor Index.
The STOXX U.S. Equity Factor Index composes of U.S. large and mid-capitalization stocks that have favourable exposure to target style factors subject to constraints.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.08%.
It's 12-month trailing dividend yield comes in at 1.05%.
Sector Exposure and Top Holdings
ETFs offer 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.
LRGF's heaviest allocation is in the Information Technology sector, which is about 37.2% of the portfolio. Its Financials and Healthcare round out the top three.
Looking at individual holdings, Nvidia (NVDA) accounts for about 7.73% of total assets, followed by Apple (AAPL) and Microsoft (MSFT).
LRGF's top 10 holdings account for about 35.78% of its total assets under management.
Performance and Risk
Year-to-date, the iShares U.S. Equity Factor ETF has gained about 13.79% so far, and is up roughly 12.05% over the last 12 months (as of 10/28/2026). LRGF has traded between $64.13 $79.68 in this past 52-week period.
The fund has a beta of 0.98 and standard deviation of 14.89% for the trailing three-year period, which makes LRGF a medium risk choice in this particular space. With about 306 holdings, it effectively diversifies company-specific risk .
Alternatives
iShares U.S. Equity Factor ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Fidelity High Dividend ETF (FDVV) tracks Fidelity Core Dividend Index and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Fidelity High Dividend ETF has $10.52 billion in assets, iShares Core S&P U.S. Value ETF has $28.42 billion. FDVV has an expense ratio of 0.15% and IUSV 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 - All 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 U.S. Equity Factor ETF (LRGF) a Strong ETF Right Now?
The iShares U.S. Equity Factor ETF (LRGF - Free Report) was launched on 04/28/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $3.71 billion, this makes it one of the largest ETFs in the Style Box - All Cap Value. LRGF is managed by Blackrock. Before fees and expenses, LRGF seeks to match the performance of the MSCI USA Diversified Multiple-Factor Index.
The STOXX U.S. Equity Factor Index composes of U.S. large and mid-capitalization stocks that have favourable exposure to target style factors subject to constraints.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.08%.
It's 12-month trailing dividend yield comes in at 1.05%.
Sector Exposure and Top Holdings
ETFs offer 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.
LRGF's heaviest allocation is in the Information Technology sector, which is about 37.2% of the portfolio. Its Financials and Healthcare round out the top three.
Looking at individual holdings, Nvidia (NVDA) accounts for about 7.73% of total assets, followed by Apple (AAPL) and Microsoft (MSFT).
LRGF's top 10 holdings account for about 35.78% of its total assets under management.
Performance and Risk
Year-to-date, the iShares U.S. Equity Factor ETF has gained about 13.79% so far, and is up roughly 12.05% over the last 12 months (as of 10/28/2026). LRGF has traded between $64.13 $79.68 in this past 52-week period.
The fund has a beta of 0.98 and standard deviation of 14.89% for the trailing three-year period, which makes LRGF a medium risk choice in this particular space. With about 306 holdings, it effectively diversifies company-specific risk .
Alternatives
iShares U.S. Equity Factor ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Fidelity High Dividend ETF (FDVV) tracks Fidelity Core Dividend Index and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Fidelity High Dividend ETF has $10.52 billion in assets, iShares Core S&P U.S. Value ETF has $28.42 billion. FDVV has an expense ratio of 0.15% and IUSV 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 - All 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.