SVAL Profile
iShares US Small Cap Value Factor ETF is an exchange-traded fund designed to offer investors exposure to small-capitalization U.S. companies that exhibit strong value characteristics. The fund tracks an index specifically created to measure the performance of small-cap stocks with prominent value factors, as identified by the index provider. These value factors include financial metrics such as low price-to-earnings ratios, low price-to-book ratios, and high dividend yields, which are indicative of undervalued stocks with potential for future growth.
Under normal market conditions, the ETF invests at least 80% of its assets in the component securities of its underlying index, as well as in investments that have economic characteristics substantially identical to those of the index components. This strategy ensures that the fund's portfolio closely mirrors the index's composition, focusing on stocks that meet the value criteria established by the index provider. The approach is designed to provide investors with targeted exposure to small-cap value stocks that may offer significant upside potential.
The index used by the fund is composed of small-cap U.S. companies that have been selected based on their value characteristics. Small-cap stocks are typically those with smaller market capitalizations compared to large-cap or mid-cap stocks, and they often represent emerging or growth-oriented businesses. By focusing on value stocks within this segment, the fund aims to capitalize on potential mispricings and undervaluations in the small-cap market.
Managed by BlackRock, the iShares US Small Cap Value Factor ETF benefits from the firm's extensive expertise in managing factor-based and small-cap investments. BlackRock applies a disciplined investment process, utilizing advanced analytics and research to ensure the fund's holdings align with the value characteristics of the underlying index. The ETF provides investors with a strategic approach to accessing small-cap value opportunities, combining the potential for capital appreciation with a focus on identifying undervalued stocks in the U.S. equity market.
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