iShares S&P Mid-Cap 400 Value ETF (IJJ)

ETF iShares S&P Mid-Cap 400 Value ETF: An Overview

Profile

The ETF iShares S&P Mid-Cap 400 Value ETF (IJJ) invests in a diversified portfolio of mid-sized US companies selected for their value characteristics. It tracks the S&P MidCap 400 Value Index, which comprises 400 mid-cap companies with value-oriented characteristics.

Objective

IJJ aims to provide long-term capital appreciation by investing in mid-cap value stocks, capturing potential growth and income from this segment of the market.

Issuer

BlackRock, the world's largest asset manager, issues IJJ. BlackRock is known for its strong reputation, robust investment platform, and extensive experience in managing exchange-traded funds.

Market Share & Total Net Assets

IJJ holds a significant market share in the Mid-Cap Value ETF space, with approximately $19.58 billion in assets under management (as of November 8, 2023).

Moat

Competitive Advantages:

• Scale and Experience: BlackRock's size and experience grant IJJ access to valuable resources and expertise.
• Liquidity: IJJ's high trading volume ensures easy buying and selling.
• Low Fees: IJJ's expense ratio of 0.19% is competitive compared to peers.

Financial Performance

Historical Performance: IJJ has delivered positive returns over various timeframes:

• 1 year: 12.31%
• 3 years: 14.48%
• 5 years: 16.75%

Benchmark Comparison: IJJ has outperformed its benchmark, the S&P MidCap 400 Value Index, over the past 3 and 5 years.

Growth Trajectory

The mid-cap value segment is expected to exhibit moderate growth in the coming years, driven by improving economic conditions and increasing investor interest in value stocks.

Liquidity

Average Daily Trading Volume: IJJ has a high average daily trading volume, exceeding 1.5 million shares, indicating good liquidity. Bid-Ask Spread: The bid-ask spread is tight, indicating low transaction costs.

Market Dynamics

Positive Factors:

• Economic recovery
• Rising interest rate environment favoring value stocks
• Growing investor appetite for value investing

Negative Factors:

• Potential market volatility
• Inflationary pressures
• Geopolitical uncertainties

Competitors

• iShares S&P SmallCap 600 Value ETF (IJS)
• Vanguard S&P Mid-Cap 400 Value ETF (IJH)
• Schwab U.S. Mid-Cap Value ETF (SCHV)

Expense Ratio

The expense ratio for IJJ is 0.19%, which is considered low compared to other ETFs in the mid-cap value space.

Investment Approach & Strategy

• Strategy: IJJ passively tracks the S&P MidCap 400 Value Index, replicating its portfolio composition.
• Composition: The ETF holds a diversified portfolio of mid-sized US companies with value characteristics, spread across various sectors.

Key Points

• Invests in mid-cap value stocks
• Seeks long-term capital appreciation
• Offers diversification and low fees
• Demonstrates strong historical performance
• Highly liquid with tight bid-ask spreads

Risks

• Market Risk: IJJ's value stocks are susceptible to market fluctuations.
• Volatility Risk: The mid-cap segment can experience higher volatility than the broader market.
• Sector Risk: The ETF's concentration in specific sectors could expose it to sector-specific risks.

Who Should Consider Investing?

• Investors seeking long-term capital growth through mid-cap value stocks
• Investors with a value investing approach
• Investors seeking portfolio diversification

Fundamental Rating Based on AI: 8/10

IJJ receives a strong rating based on its solid financial performance, competitive advantages, and favorable market dynamics. The AI analysis considers factors like historical returns, expense ratios, liquidity, and market trends.

Resources and Disclaimers

• Data sources: BlackRock, Yahoo Finance, Morningstar
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Investing involves risk, and you could lose money. Always conduct your research and consult with a financial professional before making any investment decisions.