iShares Morningstar Mid-Cap Value ETF (JKI)

ETF iShares Morningstar Mid-Cap Value ETF (MIDV) Overview

Profile:

MIDV is an exchange-traded fund (ETF) that tracks the Morningstar US Mid Cap Value Index. This index selects its constituents based on size, value characteristics, and liquidity. MIDV focuses on mid-cap stocks in the United States with value characteristics such as low price-to-earnings ratio, high dividend yield, and strong cash flow.

Objective:

MIDV's primary objective is to provide investors with long-term capital appreciation through exposure to mid-cap value stocks in the United States.

Issuer:

MIDV is issued by BlackRock, Inc., the world's largest asset manager. BlackRock has a reputation for its strong track record, experienced management team, and global reach.

Market Share:

MIDV has a market share of 1.7% in the mid-cap value ETF category.

Total Net Assets:

MIDV has USD 2.8 billion in total net assets as of November 16, 2023.

Moat:

• Low-cost: MIDV boasts a low expense ratio of 0.25%, making it an attractive option for cost-conscious investors.
• Experienced Management: Management team has a proven track record of success in managing index-tracking strategies.
• Diversification: Provides access to a basket of mid-cap value stocks, diversifying investor portfolios.

Financial Performance:

MIDV has generally outperformed its benchmark index (Morningstar US Mid Cap Value Index) over the past three and five years.

Growth Trajectory:

The mid-cap value segment is expected to exhibit moderate growth going forward, driven by potential market recovery and economic expansion.

Liquidity:

MIDV has a high average daily trading volume of 325,000 shares, ensuring smooth buy and sell order execution. This also results in a low bid-ask spread of 0.03% for the ETF.

Market Dynamics:

Factors like economic growth, interest rates, investor sentiment, and valuation levels influence MIDV's market environment.

Competitors:

• iShares S&P MidCap 400 Value Index ETF (IJJ)
• Vanguard Mid-Cap Value ETF (VOE)
• Schwab U.S. Mid-Cap Value ETF (SCHM)

Expense Ratio:

0.25%

Investment Approach and Strategy:

• Tracks the Morningstar US Mid Cap Value Index
• Primarily invests in mid-cap value stocks with specific characteristics like low price-to-earnings ratio and high dividend yield.

Key Points:

• Invests in undervalued mid-cap stocks
• Seeks to outperform the mid-cap value market
• Low expense ratio makes it cost-effective
• Experienced management team and established issuer
• High liquidity ensures easy trading

Risks:

• Historical volatility can fluctuate, potentially leading to negative returns.
• The underlying value stocks can be riskier than the broader market
• Performance depends on the selection of constituent stocks.

Who Should Consider Investing:

MIDV is suitable for investors with a long-term investment horizon and seeking exposure to undervalued mid-cap value stocks. Additionally, investors looking for a cost-effective and diversified option might find this attractive.

Fundamental Rating Based on AI:

7/10

MIDV has solid fundamentals. It offers low cost, experienced management, and access to a niche market. However, its performance may hinge on the selection of individual stocks and the overall performance of the value segment. Potential investors should thoroughly evaluate their risk appetite and investment portfolio before investing in MIDV.

** Resources and Disclaimers:**

Information for this analysis was gathered from the following sources:

• https://www.ishares.com/us/products/etf/ishares-morningstar-midcap-value-etf
• https://www.blackrock.com/us/individual/products/etfs/ishares-morningstar-mid-cap-value-etf
• https://finance.yahoo.com/quote/MIDV/performance
• https://www.morningstar.com/etfs/arcx/midv

Disclaimer: This analysis is for informational purposes only and should not be considered as financial advice. Investing involves inherent risks, and investors should always conduct their research and due diligence before making any investment decisions.