Launched on 07/17/2001, the iShares Russell Mid-Cap Value ETF (IWS) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Value segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $13.13 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
Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. Thus they have a nice balance of growth potential and stability.
While 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. 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 1.55%.
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 18% of the portfolio. Industrials and Real Estate round out the top three.
Looking at individual holdings, Microstrategy Inc Class A (MSTR) accounts for about 1% of total assets, followed by Arthur J Gallagher (AJG) and Williams Inc (WMB).
The top 10 holdings account for about 7.37% 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 0.04% so far this year and it's up approximately 7.98% in the last one year (as of 06/05/2025). In the past 52-week period, it has traded between $110.58 and $140.32.
The ETF has a beta of 1 and standard deviation of 18.05% for the trailing three-year period, making it a medium risk choice in the space. With about 716 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 a great 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 $7.99 billion in assets, Vanguard Mid-Cap Value ETF has $17.59 billion. SDVY has an expense ratio of 0.59% and VOE charges 0.07%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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 Reports Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report Arthur J. Gallagher & Co. (AJG): Free Stock Analysis Report MicroStrategy Incorporated (MSTR): Free Stock Analysis Report Vanguard Mid-Cap Value ETF (VOE): ETF Research Reports First Trust SMID Cap Rising Dividend Achievers ETF (SDVY): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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