The iShares Russell 1000 Value ETF (IWD) offers a solid investment option with low costs and strong performance potential
New York: The iShares Russell 1000 Value ETF, or IWD, kicked off on May 22, 2000. It’s a passively managed fund that aims to give you broad access to large-cap value stocks in the U.S. market.
Sponsored by Blackrock, this ETF has gathered over $63.38 billion in assets, making it one of the biggest players in the large-cap value space.
So, why consider large-cap value stocks? Well, these companies usually have market caps over $10 billion. They’re seen as more stable, with predictable cash flows and less volatility compared to smaller companies.
Value stocks tend to have lower price-to-earnings and price-to-book ratios, along with slower sales and earnings growth. Historically, value stocks have outperformed growth stocks in the long run, but growth stocks can shine in strong bull markets.
When it comes to costs, the expense ratio is crucial for your returns. IWD has an annual operating expense of just 0.19%, which is pretty low for an ETF.
Plus, it offers a 12-month trailing dividend yield of 1.86%, which is a nice perk for investors.
This ETF is heavily invested in the Financials sector, making up about 22.70% of its portfolio. The top three sectors also include Industrials and Healthcare.
Looking at its top holdings, Berkshire Hathaway Class B shares account for about 3.37% of the total assets, followed by JPMorgan Chase and Exxon Mobil. The top ten holdings make up around 17.25% of the total assets.
IWD aims to match the performance of the Russell 1000 Value Index, which tracks large-cap value stocks. So far this year, it has returned about 0.91% and was up around 15.96% over the last year.
In the past 52 weeks, the ETF has traded between $161.84 and $199.79. With a beta of 0.96 and a standard deviation of 15.15% over the last three years, it’s considered a medium-risk option.
For those looking for alternatives, IWD holds a Zacks ETF Rank of 1, which is a strong buy. Other ETFs like Schwab U.S. Dividend Equity ETF and Vanguard Value ETF are also worth checking out.
Retail and institutional investors are increasingly drawn to passively managed ETFs for their low costs and transparency. They’re great for long-term investing.
If you want to dive deeper into this ETF or others, check out Zacks ETF Center for more info and articles.
