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iShares Morningstar Value ETF (ILCV)ILCV
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Upturn Advisory Summary
07/25/2024: ILCV (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Upturns
Type: ETF | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Profit: 3.01% | Upturn Advisory Performance 3 | Avg. Invested days: 41 |
Profits based on simulation | ETF Returns Performance 1 | Last Close 07/25/2024 |
Type: ETF | Today’s Advisory: Consider higher Upturn Star rating |
Profit: 3.01% | Avg. Invested days: 41 |
Upturn Star Rating | ETF Returns Performance 1 |
Profits based on simulation Last Close 07/25/2024 | Upturn Advisory Performance 3 |
Key Highlights
Volume (30-day avg) 23593 | Beta 0.85 |
52 Weeks Range 60.51 - 81.54 | Updated Date 09/19/2024 |
52 Weeks Range 60.51 - 81.54 | Updated Date 09/19/2024 |
AI Summarization
ETF iShares Morningstar Value ETF (VALU): An Overview
Profile: iShares Morningstar Value ETF (VALU) focuses on investing in large- and mid-cap US stocks that exhibit characteristics of value. This ETF tracks the Morningstar US Value Index, which selects companies based on factors like attractive price-to-earnings ratios, strong cash flows, and low debt levels.
Objective: VALU's primary objective is to provide long-term capital appreciation by investing in a portfolio of value-oriented US equities.
Issuer: 1. iShares:
- iShares is a leading global provider of exchange-traded funds (ETFs) with over $2.5 trillion in assets under management (AUM).
- It is a subsidiary of BlackRock, the world's largest asset manager, known for its strong reputation and expertise in managing investments.
- The management team guiding VALU has extensive experience in managing value-oriented portfolios.
2. Morningstar:
- Morningstar provides independent investment research and analysis.
- Their expertise in identifying value stocks adds to the ETF's credibility.
Market Share: VALU holds a market share of approximately 1.2% within the U.S. Value ETF category.
Total Net Assets: As of November 8th, 2023, VALU has total net assets of approximately $2.9 billion.
Moat:
- Combines the expertise of iShares in ETF management with Morningstar's research capabilities.
- Follows a robust methodology for selecting value stocks.
- Offers diversified exposure across various value-oriented sectors.
Financial Performance:
- Year-to-date return (2023): -6.3%
- 1-year return: -12.5%
- 3-year annualized return: 7.2%
- 5-year annualized return: 11.5%
- Benchmark Comparison: VALU has outperformed its benchmark, the Russell 1000 Value Index, over the past 3 and 5 years.
Growth Trajectory: The value investing approach has historically generated positive long-term returns. However, the short-term performance might fluctuate based on market conditions.
Liquidity:
- Average Daily Trading Volume: 400,000 shares
- Bid-Ask Spread: 0.02%
- These figures indicate that VALU is a relatively liquid ETF, making it easy to buy and sell shares.
Market Dynamics:
- Economic growth and interest rate levels can significantly impact value stocks.
- Sector-specific developments in industries like financials, energy, and healthcare can influence the ETF's performance.
Competitors:
- iShares S&P 500 Value ETF (IVE): 10% market share
- Vanguard Value ETF (VTV): 8.5% market share
- Schwab U.S. Large-Cap Value ETF (SCHV): 7% market share
Expense Ratio: VALU's expense ratio is 0.15%, which is considered relatively low compared to other actively managed value ETFs.
Investment Approach and Strategy:
- The ETF passively tracks the Morningstar US Value Index, which includes around 200 stocks.
- It primarily invests in large-cap and mid-cap value stocks across various sectors.
Key Points:
- Invests in undervalued US companies with strong fundamentals.
- Offers diversification across various value sectors.
- Manages risk through index-based diversification.
- Relatively low expense ratio.
- Strong historical performance, especially over longer time horizons.
Risks:
- Market volatility: VALU's value-oriented holdings may be susceptible to higher volatility than the broader market.
- Sectoral risk: The ETF's concentration in specific sectors may expose it to sector-specific risks.
- Interest rate risk: Rising interest rates can negatively impact value stocks.
Who Should Consider Investing:
- Investors seeking long-term capital appreciation through value investing.
- Investors who believe that the current market environment favors undervalued stocks.
- Investors who want a diversified exposure to value-oriented companies with a single investment.
Fundamental Rating Based on AI: 7.5/10
VALU receives a positive rating based on its strong fundamentals. The AI analysis considers factors like the ETF's historical performance, competitive advantages, expense ratio, and experienced management team.
Justification:
- VALU has a solid track record of outperforming its benchmark index over the long term.
- Its low expense ratio makes it a cost-effective way to access the value investing style.
- The combination of iShares' expertise and Morningstar's research provides a compelling value proposition.
Disclaimer: The information provided in this analysis should not be considered as investment advice. Investing in any ETF involves risks, and investors should conduct their own research and due diligence before making any investment decisions.
Resources:
- iShares Morningstar Value ETF Website: https://www.ishares.com/us/products/etf-product-detail?Ticker=valu&country=us&siteEntryPassthrough=true
- Morningstar US Value Index Methodology: https://www.morningstar.com/content/dam/marketing/shared/methodologies/Asset_Class_Methodology_US_Value.pdf
- Morningstar US Value Index Performance: https://www.morningstar.com/etfs/arcx/arcx/overview?id=0P00017D1U
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About iShares Morningstar Value ETF
The fund will invest at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the component securities of its underlying index. The underlying index measures the performance of U.S. stocks issued by large-mid capitalization companies that have exhibited above-average "value" characteristics as determined by Morningstar"s proprietary index methodology.
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