iShares Edge MSCI World Value Factor UCITS ETF USD (Dist)
| Issuer: iShares |
| Asset Class: Equity |
| TER: 30bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 27 Feb 2018 |
| Ticker: IWVU |
| ISIN: IE00BFYTYS33 |
This fund offers targeted exposure to large and mid-capitalisation companies across developed global markets that exhibit strong value characteristics. The strategy deviates from traditional market-cap weighting by systematically selecting stocks based on fundamental metrics such as price-to-book value, price-to-forward earnings, and enterprise value-to-cash flow from operations. The objective is to capture the potential excess returns associated with the 'value' factor, a well-documented market anomaly where undervalued stocks have historically outperformed over the long term. By focusing on these specific traits, the portfolio provides a distinct tilt towards companies the market may be pricing below their intrinsic worth.
This product is designed for investors seeking to supplement a core global equity holding with a strategic, factor-based allocation. It is particularly suitable for those with a long-term investment horizon who believe in the value investing philosophy and are willing to accept periods of performance deviation from the broader market. It can be used to express a tactical view that value stocks are poised for a period of outperformance relative to growth stocks, or as a permanent portfolio tilt to systematically harvest the value premium. The fund offers a cost-effective and transparent way to implement this specific factor strategy within a diversified portfolio.
Investors should be aware that factor-based strategies, including value, can experience prolonged periods of underperformance relative to the broader market. While the aim is long-term outperformance, there is no guarantee this will be achieved. The fund's global nature exposes it to currency risk, as fluctuations in exchange rates can impact returns. Furthermore, as an equity investment, it is subject to market risk, and the value of the investment can fall as well as rise.
