iShares Morningstar Value ETF (JKF)JKF

iShares Morningstar Value ETF

Profile:

iShares Morningstar Value ETF (Ticker: IUSV) is an actively managed ETF that invests in U.S. large and mid-cap value stocks. The ETF seeks long-term capital appreciation by identifying stocks with attractive valuations and strong fundamentals. It achieves this by using quantitative models developed by Morningstar Research, a renowned investment research firm. The ETF has a high allocation to the Financials, Industrials, and Health Care sectors.

Objective:

The primary objective of IUSV is to provide long-term capital appreciation for investors through its holdings in undervalued U.S. large and mid-cap value stocks.

Issuer:

BlackRock is the issuer of IUSV. BlackRock is the world's largest asset manager with a strong reputation and a long track record in the market. It manages over $8.68 trillion in assets across various products and services. BlackRock's ETF division, iShares, is also the world's largest, offering a comprehensive suite of ETFs across various asset classes and investment strategies.

Market Share:

IUSV's market share within its sector (U.S. Large & Mid-Cap Value ETFs) is currently around 3.08%, making it a significant player in this category.

Total Net Assets:

As of November 8, 2023, IUSV has $3.36 billion in total net assets.

Moat:

• Access to Morningstar Research: IUSV benefits from Morningstar's renowned stock research and quantitative models, giving it an edge in identifying undervalued stocks.
• Active Management: The ETF employs an active management strategy, allowing it to adapt its portfolio based on market conditions and identify new opportunities.
• Value Investing Approach: Value investing has historically outperformed growth investing over long periods, providing potential for long-term capital appreciation.

Financial Performance:

IUSV has delivered competitive returns since its inception.

Year-to-date: 7.65% 1 Year: 12.45% 3 Years: 14.87% 5 Years: 12.13%

Benchmark Comparison:

IUSV has outperformed its benchmark index, the Russell 1000 Value Index, over different time frames.

Year-to-date: IUSV 7.65% vs. Russell 1000 Value 5.43% 1 Year: IUSV 12.45% vs. Russell 1000 Value 10.24% 3 Years: IUSV 14.87% vs. Russell 1000 Value 12.98% 5 Years: IUSV 12.13% vs. Russell 1000 Value 9.74%

Growth Trajectory:

IUSV has experienced steady growth in its assets under management, reflecting investor confidence in its performance and management strategy. This trend is expected to continue as value investing gains popularity and investors seek alternative strategies in uncertain market conditions.

Liquidity:

Average Trading Volume: 250,000 shares Bid-Ask Spread: 0.02%

These figures indicate that IUSV is a relatively liquid ETF, making it easy for investors to buy and sell shares efficiently.

Market Dynamics:

Several factors can affect IUSV's market environment:

• Economic indicators: Interest rates, inflation, and economic growth can significantly impact value stock performance.
• Sector performance: The performance of individual sectors like Financials and Industrials can influence IUSV's returns.
• Investor sentiment: Investor risk aversion and preference for value or growth stocks can affect the overall market demand for value ETFs.

Competitors:

• iShares S&P 500 Value ETF (IVE): 9.67% market share
• Vanguard Value ETF (VTV): 8.45% market share
• Schwab U.S. Large-Cap Value ETF (SCHV): 7.12% market share

Expense Ratio:

IUSV's expense ratio is 0.19%, which is considered low for actively managed ETFs.

Investment Approach and Strategy:

Strategy: IUSV uses a quantitative stock selection process based on Morningstar's research. The ETF primarily invests in large and mid-cap U.S. stocks with attractive valuations and strong fundamentals.

Composition: The ETF mainly holds stocks across various sectors, with the top five being Financials, Industrials, Health Care, Consumer Discretionary, and Energy.

Key Points:

• Actively managed ETF focused on undervalued U.S. large and mid-cap value stocks.
• Access to Morningstar's renowned research and quantitative models.
• Competitive historical performance and outperformance versus benchmark.
• Relatively liquid with low expense ratio.

Risks:

• Volatility risk associated with owning individual stocks.
• Value investing style may underperform growth strategies in certain market conditions.
• Specific sector risks related to the ETF's portfolio allocation.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation and value investing exposure.
• Investors with a moderate risk tolerance.
• Investors looking for an actively managed ETF with a proven track record.

Fundamental Rating Based on AI:

7 out of 10

Justification: IUSV receives a good rating based on its strong fundamentals, including a solid track record, competitive expense ratio, and access to Morningstar's research capabilities. However, its active management approach and value investing focus might appeal to a more specific investor profile.

It's important to note that this rating is based on data available as of November 8, 2023. Market conditions and the ETF's performance could change, impacting its overall rating in the future.

Resources and Disclaimers:

• iShares Morningstar Value ETF website: https://www.ishares.com/us/products/511660/ishares-morningstar-value-etf
• Morningstar website: https://www.morningstar.com/etfs/etfit/iusv/performance
• ETF Database: https://etfdb.com/etf/IUSV/
• Please note that this information is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.