FOVL Profile
The iShares Focused Value Factor ETF is designed to track an index that captures the performance of large- and mid-cap U.S. companies exhibiting prominent value factor characteristics, as defined by Russell. This value factor focuses on identifying companies that are considered undervalued based on various financial metrics such as price-to-earnings ratios, price-to-book ratios, and dividend yields. By targeting these value-oriented characteristics, the fund aims to offer investors exposure to firms that may be trading below their intrinsic value relative to their earnings and assets.
The ETF allocates at least 80% of its assets to securities included in its underlying index, which comprises a selection of value-oriented stocks from large- and mid-cap segments of the U.S. equity market. The index is meticulously constructed to reflect companies that exhibit strong value attributes, and the ETF seeks to closely mirror this index by investing in component securities and similar investments that share economic characteristics with those in the index.
The fund’s strategy centers on leveraging the value factor to identify companies that are potentially undervalued and poised for price appreciation. This approach involves selecting stocks that are trading at lower valuations relative to their fundamental metrics, which can provide opportunities for capital growth as market conditions shift and the perceived value of these stocks is realized. The fund’s focus on large- and mid-cap companies ensures exposure to well-established firms with significant market presence and financial stability.
Managed by BlackRock, the ETF benefits from the firm's extensive experience in factor investing and index management. BlackRock’s rigorous selection process and comprehensive research capabilities support the fund’s goal of providing investors with access to high-quality, value-oriented equities. The firm's expertise in executing and maintaining index strategies underscores its commitment to delivering effective investment solutions for those seeking exposure to undervalued segments of the U.S. equity market.
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