Is iShares Core S&P U.S. Value ETF (IUSV) a Strong ETF Right Now?
Smart Beta ETF report for IUSV
The iShares Core S&P U.S. Value ETF (IUSV) made its debut on 07/24/2000, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Value category of the market.
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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
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
Because the fund has amassed over $11.98 billion, this makes it the largest ETF in the Style Box - All Cap Value. IUSV is managed by Blackrock. IUSV seeks to match the performance of the S&P 900 Value Index before fees and expenses.
The S&P 900 Value Index measures the performance of the large and mid-capitalization value sector of the U.S. equity market.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.04%, making it the least expensive product in the space.
IUSV's 12-month trailing dividend yield is 1.87%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
IUSV's heaviest allocation is in the Financials sector, which is about 20.60% of the portfolio. Its Healthcare and Industrials round out the top three.
When you look at individual holdings, Berkshire Hathaway Inc Class B (BRK.B) accounts for about 2.78% of the fund's total assets, followed by Jpmorgan Chase & Co (JPM) and Bank Of America Corp (BAC).
The top 10 holdings account for about 16.54% of total assets under management.
Performance and Risk
The ETF has added about 26.92% and is up about 26.10% so far this year and in the past one year (as of 12/31/2021), respectively. IUSV has traded between $61.28 and $76.45 during this last 52-week period.
The ETF has a beta of 1.01 and standard deviation of 22.96% for the trailing three-year period, making it a medium risk choice in the space. With about 746 holdings, it effectively diversifies company-specific risk.
IShares Core S&P U.S. Value ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Fidelity High Dividend ETF (FDVV) tracks Fidelity Core Dividend Index and the Dimensional U.S. Targeted Value ETF (DFAT) tracks ----------------------------------------. Fidelity High Dividend ETF has $1.04 billion in assets, Dimensional U.S. Targeted Value ETF has $6.67 billion. FDVV has an expense ratio of 0.29% and DFAT charges 0.34%.
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.
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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iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports
Bank of America Corporation (BAC): Free Stock Analysis Report
JPMorgan Chase & Co. (JPM): Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
Fidelity High Dividend ETF (FDVV): ETF Research Reports
Dimensional U.S. Targeted Value ETF (DFAT): ETF Research Reports
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