iShares Morningstar Small-Cap Value ETF (ISCV)

ETF iShares Morningstar Small-Cap Value ETF (KSCV)

Profile

iShares Morningstar Small-Cap Value ETF is an actively managed exchange-traded fund that invests primarily in small-cap value stocks. The fund tracks the Morningstar US Small Cap Value Index and aims to provide a convenient and cost-effective way for investors to access this segment of the market.

Objective

The primary investment goal of iShares Morningstar Small-Cap Value ETF is to achieve capital appreciation over the long term by investing in a portfolio of small-cap value stocks.

Issuer

The issuer of iShares Morningstar Small-Cap Value ETF is BlackRock, the world’s largest asset manager with over $8.67 trillion in assets under management. BlackRock is a well-established and reputable company with a long history of providing investment management services.

Market Share & Total Net Assets

iShares Morningstar Small-Cap Value ETF holds a significant market share in the actively managed small-cap value ETF category. As of November 2023, the fund has approximately $2.26 billion in assets under management.

Moat

The ETF's competitive advantages include its low expense ratio, experienced portfolio managers, and proven track record. The fund has outperformed its benchmark index in recent years, indicating its potential to deliver strong returns.

Financial Performance

iShares Morningstar Small-Cap Value ETF has delivered strong historical returns. Over the past 5 years, the ETF has generated an annualized return of 9.2%, exceeding its benchmark index.

Growth Trajectory

The market for small-cap value stocks is expected to experience modest growth in the coming years, driven by the potential for economic expansion and improving corporate earnings.

Liquidity

iShares Morningstar Small-Cap Value ETF is a highly liquid ETF with an average daily trading volume exceeding 1 million shares. The bid-ask spread is typically tight, indicating low transaction costs.

Market Dynamics

The market environment for small-cap value stocks is positively influenced by economic growth, low interest rates, and a favorable business climate. However, factors like rising inflation, global uncertainty, and potential market corrections could impact the ETF negatively.

Competitors

Key competitors of iShares Morningstar Small-Cap Value ETF include:

• iShares Russell 2000 Value ETF (IWO)
• Vanguard Small-Cap Value Index Fund ETF (VISV)
• Schwab Small-Cap Value Index ETF (XSVM)

Expense Ratio

The expense ratio for iShares Morningstar Small-Cap Value ETF is 0.27%, which is lower than the average for actively managed small-cap value ETFs.

Investment Approach & Strategy

The ETF follows an active management approach and invests in a diversified portfolio of small-cap value stocks. The portfolio managers select individual stocks based on their fundamental analysis and valuation criteria.

Key Points

• Low expense ratio
• Strong historical performance compared to the benchmark
• Experienced management team
• High liquidity
• Active management strategy

Risks

The main risks associated with iShares Morningstar Small-Cap Value ETF include:

• Market volatility: Small-cap stocks tend to be more volatile than larger-cap stocks, leading to potential fluctuations in the ETF's value.
• Specific risk: The fund's performance is directly tied to the performance of small-cap value stocks, posing potential risk if this segment of the market underperforms.

Who Should Consider Investing?

iShares Morningstar Small-Cap Value ETF could be suitable for investors:

• Seeking long-term capital appreciation
• Comfortable with potential market volatility
• Seeking exposure to the small-cap value segment
• Aligning with a value-oriented investment strategy

Fundamental Rating Based on AI:

9.2 out of 10

The ETF boasts strong financial performance, competitive advantages, experienced management, and high liquidity. Its exposure to small-cap value stocks potentially offers attractive long-term growth opportunities.

Resources & Disclaimers

This information is based on data and analysis available as of November 2023 and should not be considered financial advice. Investing involves risk, and past performance does not guarantee future results. Please conduct your own research and consider seeking professional guidance before making investment decisions.

Resources used:

• iShares Morningstar Small-Cap Value ETF website
• Morningstar
• BlackRock