iShares Edge MSCI USA Value Factor UCITS ETF
| Issuer: iShares |
| Asset Class: Equity |
| TER: 20bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 23 Feb 2018 |
| Ticker: IUVD |
| ISIN: IE00BFF5RX68 |
This fund offers targeted exposure to large and mid-capitalisation companies within the United States that exhibit strong value characteristics. The investment strategy is designed to capture the performance of undervalued stocks by tracking a specialised index. This index systematically selects securities based on fundamental metrics such as price-to-book value, forward price-to-earnings ratio, and enterprise value-to-operating cash flow. By focusing on these quantitative measures, the fund provides a disciplined approach to value investing, aiming to capitalise on the long-term historical tendency of value stocks to outperform their growth counterparts.
The portfolio provides a diversified basket of US equities, offering a distinct tilt away from traditional market-cap-weighted indices that are often heavily concentrated in high-growth, high-valuation technology firms. Instead, this fund's holdings are typically more weighted towards established, mature businesses in sectors like financials, healthcare, and consumer staples. This composition can offer a degree of portfolio diversification, as the performance of value stocks can be counter-cyclical to that of growth stocks. The fund employs a physical replication strategy, meaning it directly owns the underlying securities of the index, providing transparency and direct ownership of the assets.
This product is suitable for investors seeking to implement a factor-based strategy within their core US equity allocation. It can be used to complement existing growth-focused holdings or as a standalone tool for those who believe in the value premium's potential for long-term outperformance. By providing a low-cost, systematic, and transparent vehicle, it allows investors to access a sophisticated investment style that has historically been a key driver of equity returns. The fund's distributing share class structure also provides the potential for a regular income stream to investors.
