We have qualitatively reviewed this strategy and reaffirmed its Above Average Process and People ratings. The following text is from Dec. 12, 2022. IShares Core S&P U.S. Value ETF IUSV constructs a well-diversified, market-cap-weighted basket of U.S. value stocks at a low cost.

The fund samples the S&P 900 Value Index, which pulls in the cheaper half of U.S. large- and mid-cap stocks then weights them by market cap. These stocks attract widespread investor attention and tend to be priced more accurately than small-cap companies. This makes market-cap-weighting a sensible approach.

Market-cap-weighting allows constituent weights to fluctuate with their prices, bypassing the need to rebalance stock positions outside of companies added or removed from the index. This, along with index buffers, helps reduce turnover and the associated trading costs.

This portfolio looks a lot like the large-value Morningstar Category average, which indicates that it draws on the full opportunity set available to active investors in this space. Despite its smaller-than-average market-cap orientation, the fund accurately mimics the value-orientation and sector weights of its category peers. This accentuates its fee advantage and positions the fund for sound category-relative returns over the long run.

Analyst Rating

Broad exposure to U.S. value stocks.

Associate Analyst

Mo'ath Almahasneh

Berkshire Hathaway Inc. - Ordinary Shares - Class B

JPMorgan Chase & Co

Exxon Mobil

Johnson & Johnson

UnitedHealth Group

Chevron

Walmart

Bank of America

Procter & Gamble

Wells Fargo

We have qualitatively reviewed this strategy and reaffirmed its Above Average Process rating. The following text is from Dec. 12, 2022.

The S&P 900 Value Index constructs a market-cap-weighted portfolio that channels the market's collective wisdom and diversifies risk effectively. The fund earns an Above Average Process Pillar rating.

Above Average

Process

We have qualitatively reviewed this strategy and reaffirmed its Above Average People rating. The following text is from Dec. 12, 2022.

The team employs BlackRock's Aladdin platform to fulfill much of its portfolio management tasks, and global trading desks allow traders to conduct foreign transactions in a cost-effective way.

The iShares team had some turnover over the past few years. But index-tracking performance should remain tight, thanks to heavily automated processes and several long-tenured managers that remain at the helm. Rachel Aguirre left the team in March 2021 after she was promoted to iShares' head of product engineering. Paul Whitehead replaced Alan Mason as a manager in January 2022, when Mason left to focus on the firm's customized institutional indexing capabilities. Whitehead joins Greg Savage, Jennifer Hsui, and Amy Whitelaw, who will continue to oversee this fund and have helped manage iShares ETFs since the early 2000s.

These managers interact with a wider team of traders and managers around the globe to execute the fund's day-to-day operations. The larger number of managers also limits the impact of personnel turnover when it does occur. A portion of their compensation is tethered to index-tracking performance, which aligns the managers' interests with investors.

People

BlackRock offers compelling options across asset classes and vehicles. It earns an Above Average rating for Parent. 
The firm’s approximately USD 8 trillion in assets under management, as of Sept. 30, 2022, gives it unparalleled scale and influence. It is a market-leading index fund provider globally, and its iShares exchange-traded fund franchise offers a low-cost lineup of core funds that investors can use to build a well-diversified portfolio for dirt cheap. The firm can be more adventurous in its ETF launches than some peers, so not everything it launches is appropriate for the masses. As a result, it is likely to have more ETF closures than peers that stick to the basic building blocks.  
The firm’s active fixed-income and multi-asset efforts also stand out as some of the best in the industry. Those benefit from BlackRock’s commitment to building a first-class risk management system via its Aladdin analytics software. The software is also available for sale to other firms and has proved to be a popular option for competitors, a testament to its usefulness. 
More recently, the firm has shifted its focus to ESG offerings and incorporating ESG across its investment lineup, leading to a political backlash in the United States.
BlackRock isn’t the best at everything it tries to do, but retail investors, financial advisors, and large institutions could all build robust portfolios using BlackRock’s products.

Parent

iShares Core S&P US Value ETF

IUSV tracks an index of large- and mid-cap value stocks in the US. The index selects from stocks ranked 1-3000 by market-cap based on 3 value factors.

Making its debut on 07/24/2000, smart beta exchange traded fund iShares Core S&P U.S. Value ETF (IUSV) provides investors broad exposure to the Style Box - All Cap Value category of the market.

Is iShares Core S&P U.S. Value ETF (IUSV) a Strong ETF Right Now?

iShares Core S&P U.S. Value ETF offers returns on par with the S&P 500 Index and Total Market funds, while diversifying away from big tech holdings. IUSV has achieved these returns while seeing lower volatility than the overall market. IUSV has the lowest expense ratio among peer value funds, a noteworthy dividend yield, and relatively attractive P/E and P/B ratios.

IUSV: Why Value Is An Attractive Choice During Record Market Highs

iShares Core S&P U.S. Value ETF, one of the oldest value ETFs in the market, is well-diversified across sectors and holdings. The IUSV ETF has outperformed the Russell 1000 Index since 2000 and most competitors since 2016, except one. IUSV may be used as a long-term investment or a component of tactical allocation strategies.

IUSV: An Old Value ETF Beating Most Competitors

Value investing has struggled in the past decade, but there is potential for a comeback. The iShares Core S&P U.S. Value ETF is a low-cost option for investors seeking exposure to undervalued U.S. stocks. IUSV's composition, performance, and risk profile make it a competitive choice compared to other value ETFs.

IUSV: Value's Return Is Coming

iShares Core S&P U.S. Growth ETF

iShares Core S&P U.S. Value ETF and iShares Core S&P U.S. Growth ETF are supposed to represent different areas of the market but overlap on some unexpected names. The ETFs may not accurately reflect what is expected, with some growth names included in the value-oriented portfolio and vice versa, potentially distorting the picture of what should be represented. The ETFs offer diversified portfolios with low expense ratios of 0.04% and may still produce strong results over the long term.

IUSV And IUSG: Value And Growth ETFs Showing Overlap

Value investing may provide better downside protection in a bear market, but may not be the best strategy for long-term investors. iShares Core S&P U.S. Value ETF has an inferior growth profile compared to growth stocks and a lower exposure to growth sectors such as information technology. Long-term investors should consider growth stocks instead, as IUSV's inferior growth profile may lead to lower returns in the long run.

IUSV: Growth Is Still A Better Choice

The general idea behind the value factor is that a diversified portfolio of fundamentally cheap stocks should outperform over the long term. Since January 2017, the iShares Core S&P U.S. Value ETF has tracked the S&P 900 Value Index and provides transparent exposure to the well-researched value premium.

IUSV: Transparent Value With Modest Active Risk

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IWD and IUSV track the S&P 900 Value Index and the Russell 1000 Value Index. Over the last ten years, IUSV has outperformed by 23% with marginally higher volatility. However, I expect that will change going forward. S&P Value Indices are less value-oriented after last year's rebalancings, demonstrated by Microsoft and Amazon listed as IUSV's #1 and #3 holdings.

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IUSV invests in 700+ large and mid-cap companies with value characteristics. Its 3 heaviest sectors are healthcare, financials and industrials.

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IUSV invests in a collection of stocks considered likely to be "value stocks" per popular pricing metrics: ratios of book value, earnings, and sales to price (per S&P's simple methodology). While the methodology is crude, a simple analysis of the fund's likely forward IRR based on consensus expectations leads me to believe that the fund is indeed cheap.

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IUSV uses the S&P 900 Value Index, the benchmark that is supposed to comprise 'cheap' equities selected from the S&P 900. We see a classic, rather minimalist approach as only six ratios are used to define a stock's fate, three on the value side and three on the growth side.

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PNQI and IUSV saw massive trading volumes in yesterday trading session.

News for iShares Core S&P US Value ETF ETF (IUSV)