Should iShares Russell Mid-Cap Value ETF (IWS) Be on Your Investing Radar?

If you're interested in broad exposure to the Mid Cap Value segment of the US equity market, look no further than the iShares Russell Mid-Cap Value ETF (IWS), a passively managed exchange traded fund launched on 07/17/2001.The fund is sponsored by Blackrock. It has amassed assets over $13.84 billion, making it one of the largest ETFs attempting to match the Mid Cap Value segment of the US equity market.Why Mid Cap ValueMid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. These types of companies, then, have a good balance of stability and growth potential.Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.CostsInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.Annual operating expenses for this ETF are 0.23%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.44%.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 18.10% of the portfolio. Industrials and Real Estate round out the top three.Looking at individual holdings, Williams Inc (WMB) accounts for about 0.72% of total assets, followed by Aflac Inc (AFL) and Digital Realty Trust Reit Inc (DLR).The top 10 holdings account for about 6.15% of total assets under management.Performance and RiskIWS seeks to match the performance of the Russell MidCap Value Index before fees and expenses. The Russell Midcap Value Index measures the performance of the mid-capitalization value sector of the U.S. equity market.The ETF has gained about 17.26% so far this year and it's up approximately 28.55% in the last one year (as of 11/19/2024). In the past 52-week period, it has traded between $106.46 and $137.52.The ETF has a beta of 1.10 and standard deviation of 17.99% for the trailing three-year period, making it a medium risk choice in the space. With about 719 holdings, it effectively diversifies company-specific risk.AlternativesIShares Russell Mid-Cap Value 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, IWS is a great option for investors seeking exposure to the Style Box - Mid Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.The iShares S&P Mid-Cap 400 Value ETF (IJJ) and the Vanguard Mid-Cap Value ETF (VOE) track a similar index. While iShares S&P Mid-Cap 400 Value ETF has $8.05 billion in assets, Vanguard Mid-Cap Value ETF has $18.31 billion. IJJ has an expense ratio of 0.18% and VOE charges 0.07%.Bottom-LineRetail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.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 Russell Mid-Cap Value ETF (IWS): ETF Research Reports Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report Aflac Incorporated (AFL): Free Stock Analysis Report Digital Realty Trust, Inc. (DLR): Free Stock Analysis Report Vanguard Mid-Cap Value ETF (VOE): ETF Research Reports iShares S&P Mid-Cap 400 Value ETF (IJJ): 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