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Should iShares Morningstar Mid-Cap Value ETF (JKI) Be on Your Investing Radar?
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Designed to provide broad exposure to the Mid Cap Value segment of the US equity market, the iShares Morningstar Mid-Cap Value ETF is a passively managed exchange traded fund launched on 06/28/2004.
The fund is sponsored by Blackrock. It has amassed assets over $443.82 M, 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
Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. Thus they have a nice balance of growth potential and stability.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.30%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.17%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 19.20% of the portfolio. Utilities and Consumer Discretionary round out the top three.
Looking at individual holdings, Welltower Inc (WELL - Free Report) accounts for about 1.51% of total assets, followed by Kroger (KR - Free Report) and Wec Energy Group Inc (WEC - Free Report) .
The top 10 holdings account for about 12.76% of total assets under management.
Performance and Risk
JKI seeks to match the performance of the Morningstar Mid Value Index before fees and expenses. The Morningstar Mid Value Index measures the performance of stocks issued by mid-capitalization companies.
The ETF has lost about -0.75% so far this year and is up about 5.00% in the last one year (as of 11/16/2018). In the past 52-week period, it has traded between $148.42 and $168.36.
The ETF has a beta of 0.90 and standard deviation of 13.10% for the trailing three-year period, making it a medium risk choice in the space. With about 183 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Morningstar 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, JKI is a great option for investors seeking exposure to the Mid Cap ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Mid-Cap Value ETF (VOE - Free Report) and the iShares Russell Mid-Cap Value ETF (IWS - Free Report) track a similar index. While Vanguard Mid-Cap Value ETF has $8.79 B in assets, iShares Russell Mid-Cap Value ETF has $10.98 B. VOE has an expense ratio of 0.07% and IWS charges 0.25%.
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.
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Should iShares Morningstar Mid-Cap Value ETF (JKI) Be on Your Investing Radar?
Designed to provide broad exposure to the Mid Cap Value segment of the US equity market, the iShares Morningstar Mid-Cap Value ETF is a passively managed exchange traded fund launched on 06/28/2004.
The fund is sponsored by Blackrock. It has amassed assets over $443.82 M, 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
Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. Thus they have a nice balance of growth potential and stability.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.30%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.17%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 19.20% of the portfolio. Utilities and Consumer Discretionary round out the top three.
Looking at individual holdings, Welltower Inc (WELL - Free Report) accounts for about 1.51% of total assets, followed by Kroger (KR - Free Report) and Wec Energy Group Inc (WEC - Free Report) .
The top 10 holdings account for about 12.76% of total assets under management.
Performance and Risk
JKI seeks to match the performance of the Morningstar Mid Value Index before fees and expenses. The Morningstar Mid Value Index measures the performance of stocks issued by mid-capitalization companies.
The ETF has lost about -0.75% so far this year and is up about 5.00% in the last one year (as of 11/16/2018). In the past 52-week period, it has traded between $148.42 and $168.36.
The ETF has a beta of 0.90 and standard deviation of 13.10% for the trailing three-year period, making it a medium risk choice in the space. With about 183 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Morningstar 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, JKI is a great option for investors seeking exposure to the Mid Cap ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Mid-Cap Value ETF (VOE - Free Report) and the iShares Russell Mid-Cap Value ETF (IWS - Free Report) track a similar index. While Vanguard Mid-Cap Value ETF has $8.79 B in assets, iShares Russell Mid-Cap Value ETF has $10.98 B. VOE has an expense ratio of 0.07% and IWS charges 0.25%.
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.