iShares Core S&P U.S. Value ETF (IUSV)IUSV

iShares Core S&P U.S. Value ETF (IVE) Summary:

Profile:

The iShares Core S&P U.S. Value ETF (IVE) tracks the S&P U.S. Value Index, which focuses on large- and mid-cap U.S. equities considered to be undervalued by the market. IVE invests in a broad range of sectors, with a tilt towards financials, energy, and industrials.

Objective:

IVE seeks to provide long-term capital appreciation by replicating the performance of the S&P U.S. Value Index. This ETF is not actively managed and aims to track the index passively.

Issuer:

BlackRock

BlackRock is the world's largest asset manager, with a strong reputation and a long history of managing successful ETFs.

Management:

BlackRock's experienced investment team manages IVE, ensuring efficient tracking of the underlying index.

Market Share:

IVE has a market share of approximately 15% within the U.S. Large Value ETF category.

Total Net Assets:

As of October 26, 2023, IVE has approximately $60 billion in total net assets.

Moat:

• Low Fees: IVE has an expense ratio of 0.03%, which is significantly lower than many other value ETFs.
• Liquidity: IVE's high trading volume makes it easy to buy and sell shares.
• Diversification: IVE's broad exposure to various sectors reduces concentration risk.

Financial Performance:

Historical Performance:

IVE has historically outperformed the S&P 500 during periods of value outperformance.

Benchmark Comparison:

IVE closely tracks the S&P U.S. Value Index and performs in line with its benchmark.

Growth Trajectory:

The future trajectory of value investing is uncertain, but long-term growth potential exists as value stocks tend to outperform over extended periods.

Liquidity:

• Average Trading Volume: IVE has a high average daily trading volume, making it a highly liquid ETF.
• Bid-Ask Spread: IVE's bid-ask spread is very tight, indicating low trading costs.

Market Dynamics:

• Economic Outlook: Rising interest rates and economic uncertainty can favor value stocks.
• Sector Trends: Performance is affected by the performance of financials, energy, and industrials.

Competitors:

• iShares S&P 500 Value ETF (IVE) - 15% market share
• Vanguard Value ETF (VTV) - 12% market share
• Schwab U.S. Large-Cap Value ETF (SCHV) - 10% market share

Expense Ratio:

IVE's expense ratio is 0.03%, making it one of the lowest-cost value ETFs available.

Investment Approach and Strategy:

• Strategy: IVE passively tracks the S&P U.S. Value Index.
• Composition: IVE primarily holds large- and mid-cap U.S. stocks with value characteristics.

Key Points:

• Tracks the S&P U.S. Value Index.
• Low expense ratio (0.03%).
• Highly liquid.
• Tilt towards financials, energy, and industrials.
• Potential for long-term capital appreciation.

Risks:

• Market Risk: IVE is subject to the risks associated with the U.S. equity market, including general market volatility and potential sector-specific risks.
• Value Investing Risk: Value investing may underperform growth investing during certain market conditions.
• Tracking Error: IVE's performance may slightly deviate from the S&P U.S. Value Index due to tracking error.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation from a diversified portfolio of U.S. value stocks.
• Investors who believe value stocks will outperform growth stocks in the future.
• Investors with a long-term investment horizon and a tolerance for market volatility.

Fundamental Rating Based on AI: 8/10

• IVE scores high on cost efficiency, liquidity, and diversification.
• It exhibits a strong track record of closely tracking its benchmark index.
• However, potential risks associated with value investing and general market volatility exist.

Resources and Disclaimers:

• Data Sources: BlackRock, Yahoo Finance, ETFdb.com
• Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult a qualified financial advisor before making any investment decisions.