Should iShares MSCI USA Value Factor ETF (VLUE) Be on Your Investing Radar?

If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the iShares MSCI USA Value Factor ETF (VLUE), a passively managed exchange traded fund launched on 04/16/2013.The fund is sponsored by Blackrock. It has amassed assets over $7 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.Why Large Cap ValueLarge cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.It has a 12-month trailing dividend yield of 3.31%.Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.This ETF has heaviest allocation to the Information Technology sector--about 31.50% of the portfolio. Financials and Healthcare round out the top three.Looking at individual holdings, Cisco Systems Inc (CSCO) accounts for about 6.84% of total assets, followed by At&t Inc (T) and International Business Machines Co (IBM).The top 10 holdings account for about 35.59% of total assets under management.Performance and RiskVLUE seeks to match the performance of the MSCI USA Enhanced Value Index before fees and expenses. The MSCI USA Enhanced Value Index is based on a traditional market capitalization-weighted parent index, the MSCI USA Index which includes U.S. large and mid capitalization stocks.The ETF has added about 2.50% so far this year and is up roughly 4.31% in the last one year (as of 03/21/2025). In the past 52-week period, it has traded between $99.14 and $115.38.The ETF has a beta of 1.01 and standard deviation of 16.89% for the trailing three-year period, making it a medium risk choice in the space. With about 146 holdings, it effectively diversifies company-specific risk.AlternativesIShares MSCI USA Value Factor ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VLUE is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $69.92 billion in assets, Vanguard Value ETF has $133.90 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.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 MSCI USA Value Factor ETF (VLUE): ETF Research Reports AT&T Inc. (T): Free Stock Analysis Report International Business Machines Corporation (IBM): Free Stock Analysis Report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Schwab U.S. Dividend Equity ETF (SCHD): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks