Should iShares Morningstar Mid-Cap Value ETF (IMCV) Be on Your Investing Radar?

Designed to provide broad exposure to the Mid Cap Value segment of the US equity market, the iShares Morningstar Mid-Cap Value ETF (IMCV) is a passively managed exchange traded fund launched on 06/28/2004.The fund is sponsored by Blackrock. It has amassed assets over $677.03 million, making it one of the average sized ETFs attempting to match the Mid Cap Value segment of the US equity market.Why Mid Cap ValueMid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. Thus, companies that fall under this category provide a stable and growth-heavy investment.Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.CostsSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for this ETF are 0.06%, making it the least expensive products in the space.It has a 12-month trailing dividend yield of 2.30%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Financials sector--about 19.10% of the portfolio. Energy and Utilities round out the top three.Looking at individual holdings, Capital One Financial Corp (COF) accounts for about 1.28% of total assets, followed by Williams Inc (WMB) and Oneok Inc (OKE).The top 10 holdings account for about 10.96% of total assets under management.Performance and RiskIMCV seeks to match the performance of the MORNINGSTAR US MID CAP BROAD VALUE INDEX before fees and expenses. The Morningstar US Mid Cap Broad Value Index comprises of mid-capitalization U.S. equities that exhibit value characteristics.The ETF has added roughly 2.90% so far this year and it's up approximately 16.35% in the last one year (as of 01/30/2025). In the past 52-week period, it has traded between $66.08 and $81.02.The ETF has a beta of 1.10 and standard deviation of 17.08% for the trailing three-year period. With about 293 holdings, it effectively diversifies company-specific risk.AlternativesIShares Morningstar Mid-Cap Value ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IMCV is a reasonable option for those seeking exposure to the Style Box - Mid Cap Value area of the market. Investors might also want to consider some other ETF options in the space.The iShares Russell Mid-Cap Value ETF (IWS) and the Vanguard Mid-Cap Value ETF (VOE) track a similar index. While iShares Russell Mid-Cap Value ETF has $13.89 billion in assets, Vanguard Mid-Cap Value ETF has $17.77 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%.Bottom-LineWhile an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares Morningstar Mid-Cap Value ETF (IMCV): ETF Research Reports Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report Capital One Financial Corporation (COF): Free Stock Analysis Report ONEOK, Inc. (OKE): Free Stock Analysis Report Vanguard Mid-Cap Value ETF (VOE): ETF Research Reports iShares Russell Mid-Cap Value ETF (IWS): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks