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iShares Russell 1000 Value ETF maintains steady performance with cost-effective operations

Published 2023-10-27, 01:12 p/m
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The iShares Russell 1000 Value ETF (IWD), a passively managed ETF launched in 2000 by Blackrock (NYSE:BLK), continues to offer investors exposure to the Large Cap Value segment of the US equity market. The ETF mirrors the performance of the Russell 1000 Value Index, investing primarily in stable large-cap companies with predictable cash flows. This strategy helps reduce single-stock risk and volatility.

The IWD's portfolio is composed of value stocks characterized by lower price-to-earnings and price-to-book ratios, as well as slower sales and earnings growth rates. These stocks generally outperform growth stocks over the long term, with the exception of strong bull markets.

As of today, the ETF holds $46.25 billion in assets and operates with a low expense ratio of 0.19%, making it a cost-effective option for investors. Additionally, it has a 12-month trailing dividend yield of 2.30%, often outperforming more expensive funds.

The sector allocation of IWD is predominantly in Financials, accounting for 20.60% of its portfolio, followed by Healthcare and Industrials. Key holdings include Berkshire Hathaway (NYSE:BRKa) Inc Class B (3.41%), Exxon Mobil Corp (NYSE:XOM), and JPMorgan Chase & Co (NYSE:JPM), which collectively make up 17.75% of the total assets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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