ILCV Profile
The iShares Morningstar Value ETF is engineered to track the performance of the Morningstar U.S. Value Index, which focuses on large- and mid-cap U.S. stocks exhibiting pronounced value characteristics. Morningstar, Inc.s proprietary index methodology identifies these characteristics based on fundamental metrics such as low price-to-earnings ratios, high dividend yields, and undervalued stock prices relative to their intrinsic value. By targeting companies with these value attributes, the ETF aims to offer investors exposure to a segment of the equity market that may be undervalued relative to its fundamentals.
The fund commits to investing at least 80% of its assets in the securities included in its underlying index or in investments with comparable economic characteristics. This investment strategy ensures that the ETFs portfolio mirrors the composition and performance of the Morningstar U.S. Value Index. The ETF may also hold securities outside the index with similar economic traits to maintain alignment with the index's performance metrics and to manage liquidity and risk.
The Morningstar U.S. Value Index encompasses a diverse range of sectors and industries, focusing on companies that demonstrate strong value-oriented metrics. This includes firms that are typically trading at lower valuations compared to their earnings, book value, or dividends. The index methodology prioritizes companies that exhibit long-term potential and stable financial metrics, aiming to provide a balanced approach between value and stability for investors seeking to capitalize on market inefficiencies.
Managed by BlackRock, the iShares Morningstar Value ETF leverages the global investment expertise and resources of its provider. BlackRocks advanced investment strategies are employed to enhance the ETFs performance while effectively managing risk. For investors looking to diversify their portfolios with exposure to U.S. value stocks, this ETF offers a strategic avenue for investing in companies with robust value characteristics, aligning with long-term investment goals and risk preferences.
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