Looking for broad exposure to the Mid Cap Value segment of the US equity market? You should consider the iShares Russell Mid-Cap Value ETF (IWS), a passively managed exchange traded fund launched on July 17, 2001.
The fund is sponsored by Blackrock. It has amassed assets over $15.09 billion, making it one of the largest ETFs attempting to match the Mid Cap Value segment of the US equity market.
Why Mid Cap Value
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.23%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.42%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector -- about 18.3% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Robinhood Markets Inc Class A (HOOD) accounts for about 0.81% of total assets, followed by Bank Of New York Mellon Corp (BK) and Cummins Inc (CMI).
The top 10 holdings account for about 6.71% of total assets under management.
Performance and Risk
IWS seeks to match the performance of the Russell MidCap Value Index before fees and expenses. The Russell Midcap Value Index measures the performance of the mid-capitalization value sector of the U.S. equity market.
The ETF has added roughly 7.81% so far this year and it's up approximately 15.46% in the last one year (as of 02/09/2026). In the past 52-week period, it has traded between $110.58 and $152.07.
The ETF has a beta of 1.00 and standard deviation of 15.51% for the trailing three-year period, making it a medium risk choice in the space. With about 722 holdings, it effectively diversifies company-specific risk.
Alternatives
iShares Russell Mid-Cap Value ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWS is an excellent option for investors seeking exposure to the Style Box - Mid Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The First Trust SMID Cap Rising Dividend Achievers ETF (SDVY) and the Vanguard Mid-Cap Value ETF (VOE) track a similar index. While First Trust SMID Cap Rising Dividend Achievers ETF has $10.63 billion in assets, Vanguard Mid-Cap Value ETF has $21.80 billion. SDVY has an expense ratio of 0.59% and VOE charges 0.05%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares Russell Mid-Cap Value ETF (IWS): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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