iShares Edge MSCI Intl Value Factor ETF (IVLU)

ETF iShares Edge MSCI Intl Value Factor ETF Overview

Profile:

The iShares Edge MSCI Intl Value Factor ETF (ACWX) is a passively managed exchange-traded fund that tracks the MSCI International Value Factor Index. It invests in large and mid-cap value stocks from developed markets outside the U.S. and Canada. ACWX seeks to provide investors with exposure to international value stocks with the potential for higher returns and lower risk compared to broader international markets.

Objective:

The primary investment goal of ACWX is to track the performance of the MSCI International Value Factor Index, which is designed to capture the performance of international value stocks. The fund aims to achieve this objective by investing in a portfolio of securities that closely matches the index composition.

Issuer:

BlackRock is the issuer of ACWX. BlackRock is the world's largest asset manager, with over $10 trillion in assets under management as of 2023. The company has a strong reputation and a long history of managing successful investment products.

Market Share:

ACWX is a relatively small ETF in the international value factor space, with a market share of approximately 1%. However, it is the largest ETF in its category offered by BlackRock.

Total Net Assets:

As of October 26, 2023, ACWX had approximately $1.2 billion in total net assets.

Moat:

ACWX's primary competitive advantage is its low expense ratio of 0.35%. This makes it one of the most affordable international value factor ETFs available. Additionally, ACWX benefits from BlackRock's extensive global reach and expertise in index tracking.

Financial Performance:

Since its inception in 2012, ACWX has delivered a total return of over 100%. This outperforms the MSCI International Value Factor Index, which has returned around 75% during the same period. ACWX has also outperformed the broader MSCI World Index, which has returned around 60% over the same timeframe.

Benchmark Comparison:

ACWX has consistently outperformed its benchmark, the MSCI International Value Factor Index. This suggests that the fund's active management has been successful in generating alpha for investors.

Growth Trajectory:

The value investing style has historically outperformed growth investing over the long term. This suggests that ACWX has the potential to continue to generate strong returns for investors in the future.

Liquidity:

ACWX is a relatively liquid ETF, with an average daily trading volume of over 100,000 shares. This makes it easy for investors to buy and sell the ETF without significantly impacting the price.

Market Dynamics:

The performance of ACWX is primarily driven by the performance of international value stocks. Economic growth, interest rates, and investor sentiment towards value investing are all important factors that can affect the ETF's performance.

Competitors:

Key competitors of ACWX include:

• iShares International Select Value ETF (IVAL)
• Vanguard International Value ETF (IVE)
• SPDR MSCI International Value ETF (IVAL)

Expense Ratio:

The expense ratio of ACWX is 0.35%. This is lower than the average expense ratio for international value factor ETFs, which is around 0.50%.

Investment Approach and Strategy:

ACWX tracks the MSCI International Value Factor Index, which selects stocks based on a combination of factors designed to identify undervalued companies with attractive growth potential. These factors include:

• Price-to-book ratio
• Price-to-earnings ratio
• Free cash flow yield
• Debt-to-equity ratio

The fund invests in a broad portfolio of approximately 300 stocks, with no single stock accounting for more than 5% of the portfolio.

Key Points:

• Invests in international value stocks
• Aims to outperform the MSCI International Value Factor Index
• Low expense ratio of 0.35%
• Tracked by BlackRock
• Outperformed its benchmark since inception
• Relatively liquid

Risks:

• The value investing style can underperform growth investing in the short term
• International markets are more volatile than developed markets
• Currency risk

Who Should Consider Investing:

ACWX is a suitable investment for investors who:

• Believe in the value investing style
• Seek exposure to international value stocks
• Are willing to tolerate higher volatility
• Have a long-term investment horizon

Fundamental Rating Based on AI:

Based on an AI analysis of ACWX's financials, market position, and future prospects, the ETF receives a fundamental rating of 8 out of 10. This rating is supported by ACWX's strong track record, low expense ratio, and exposure to a diversified portfolio of international value stocks.

Disclaimer:

This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.