iShares Edge MSCI Europe Value Factor UCITS ETF EUR (Dist)

Issuer: iShares

Asset Class: Equity

TER: 25bps

Trading Currency: EUR

Pays Income: False

Listing Date: 27 Feb 2018

Ticker: IEDL

ISIN: IE00BG13YH41

This investment vehicle offers targeted exposure to the European equity market, focusing specifically on companies that exhibit strong 'value' characteristics. The core principle behind this strategy is that stocks trading at prices below their fundamental or intrinsic worth have the potential to deliver superior returns over the long term. By systematically identifying and investing in these seemingly undervalued companies, the fund aims to capture a well-documented market premium known as the value factor. This approach may appeal to investors who believe that the market can sometimes misprice securities, creating opportunities to buy quality businesses at a discount. It serves as a strategic tool for those looking to build a diversified portfolio with a specific tilt towards a time-tested investment style within the developed European markets.

The fund achieves its objective by tracking a specialized index that employs a rules-based methodology to screen the European stock universe. This index selects constituents based on a combination of valuation metrics, including forward price-to-earnings, price-to-book value, and enterprise value-to-operating cash flow. This quantitative process ensures a disciplined and transparent approach to portfolio construction, removing subjective decision-making from the investment process. The result is a diversified basket of large and mid-capitalization European stocks that score highly on value criteria. For investors seeking to enhance their core European equity holdings, this product provides an efficient and cost-effective way to implement a factor-based strategy, potentially improving risk-adjusted returns by harnessing the persistent market anomaly of value.