Looking for broad exposure to the Mid Cap Value segment of the US equity market? You should consider the iShares Morningstar Mid-Cap Value ETF (IMCV), a passively managed exchange traded fund launched on June 28, 2004.
The fund is sponsored by Blackrock. It has amassed assets over $995.34 million, making it one of the average sized 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 have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.06%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 2.06%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector -- about 17% of the portfolio. Industrials and Energy round out the top three.
Looking at individual holdings, Newmont (NEM) accounts for about 1.64% of total assets, followed by Us Bancorp (USB) and Pnc Financial Services Group Inc (PNC).
The top 10 holdings account for about 11.77% of total assets under management.
Performance and Risk
IMCV seeks to match the performance of the MORNINGSTAR US MID CAP BROAD VALUE INDEX before fees and expenses. The Morningstar US Mid Cap Broad Value Index comprises of mid-capitalization U.S. equities that exhibit value characteristics.
The ETF has added about 7.98% so far this year and it's up approximately 19.51% in the last one year (as of 02/12/2026). In the past 52-week period, it has traded between $65.10 and $88.91.
The ETF has a beta of 0.93 and standard deviation of 14.71% for the trailing three-year period. With about 279 holdings, it effectively diversifies company-specific risk.
Alternatives
iShares Morningstar Mid-Cap Value ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IMCV is a good option for those seeking exposure to the Style Box - Mid Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell Mid-Cap Value ETF (IWS) and the Vanguard Mid-Cap Value ETF (VOE) track a similar index. While iShares Russell Mid-Cap Value ETF has $15.22 billion in assets, Vanguard Mid-Cap Value ETF has $21.95 billion. IWS has an expense ratio of 0.23% 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 Morningstar Mid-Cap Value ETF (IMCV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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