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

US ETF iShares Core S&P U.S. Value ETF: A Comprehensive Overview

Profile

Target Sector: U.S. Equities (Large, Mid, and Small Cap)

Asset Allocation: Value Stocks

Investment Strategy: Passive, seeks to track the S&P U.S. Value Index, which comprises stocks with favorable value characteristics like low book-to-market ratios.

Management: BlackRock Fund Advisors

Objective

The primary objective of iShares Core S&P U.S. Value ETF is to provide long-term capital appreciation by investing in a portfolio of U.S. equity securities that exhibit value characteristics.

Issuer

BlackRock

Reputation and Reliability: BlackRock is the world's leading asset manager, with a strong reputation for expertise and reliability. As of June 30, 2023, BlackRock manages over $10 trillion in assets across various investment products.

Management: BlackRock employs a team of experienced portfolio managers and analysts to oversee the iShares Core S&P U.S. Value ETF.

Market Share

iShares Core S&P U.S. Value ETF is the largest U.S. value ETF by assets under management, with a market share of approximately 15% in its segment.

Total Net Assets

As of November 10, 2023, the ETF has total net assets of $112.3 billion.

Moat

Competitive Advantages:

• Low Cost: The ETF has an expense ratio of 0.03%, making it one of the most cost-effective options in its category.
• Passive Management: The ETF's passive approach minimizes tracking error and ensures efficient portfolio management.
• Liquidity: The ETF is highly liquid, with an average daily trading volume of over 50 million shares.

Financial Performance

• Historical Returns: Since its inception in 2001, the ETF has delivered an annualized return of 10.3%.
• Market Outperformance: The ETF has outperformed the S&P 500 Index over the past 10 and 15 years.

Growth Trajectory

The value investing style tends to perform well in the long term, and the ETF is well-positioned to benefit from this trend.

Liquidity

• Average Trading Volume: Over 50 million shares per day.
• Bid-Ask Spread: Tight bid-ask spread, indicating good liquidity.

Market Dynamics

Factors Affecting the Market Environment:

• Economic Growth: A strong economy can drive value stocks higher.
• Interest Rates: Rising interest rates can negatively impact value stocks.
• Market Sentiment: Investor sentiment towards value stocks can influence their performance.

Competitors

• Vanguard Value ETF (VTV): Second-largest U.S. value ETF, with a market share of approximately 10%.
• iShares S&P 500 Value ETF (IVE): Tracks the S&P 500 Value Index, which focuses on large-cap value stocks.
• Schwab U.S. Large-Cap Value ETF (SCHV): Low-cost ETF targeting large-cap value stocks.

Expense Ratio

0.03%

Investment Approach and Strategy

• Strategy: Passive, tracks the S&P U.S. Value Index.
• Composition: Invests in a broad range of U.S. stocks with value characteristics, including financials, industrials, and energy sectors.

Key Points

• Offers low-cost exposure to a diversified portfolio of U.S. value stocks.
• Has a strong track record of outperforming the S&P 500 Index.
• Highly liquid and suitable for both long-term investors and traders.

Risks

• Market Risk: Value stocks are more sensitive to market fluctuations than growth stocks.
• Volatility: The ETF's value can fluctuate significantly, especially during periods of market uncertainty.
• Sector Concentration: The ETF has a significant allocation to financials and energy sectors, which can be vulnerable to sector-specific risks.

Who Should Consider Investing

• Investors seeking long-term capital appreciation through a passive investment approach.
• Investors with a value investing outlook and a long-term investment horizon.
• Investors who want to diversify their portfolio with a low-cost ETF.

Fundamental Rating Based on AI

8.5/10

Justification:

• The ETF's low expense ratio, strong track record, and significant market share are all positive factors.
• The ETF's exposure to value stocks, which have historically outperformed growth stocks over the long term, is also a plus.
• However, the ETF's sector concentration and susceptibility to market volatility are potential risks.

Resources and Disclaimers

• iShares Core S&P U.S. Value ETF website: https://www.ishares.com/us/products/etf/ive
• Morningstar ETF Report: https://www.morningstar.com/etfs/usa/ive/quote
• Yahoo Finance ETF Profile: https://finance.yahoo.com/quote/IVE/profile?p=IVE

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.