iShares Edge MSCI Intl Value Factor ETF (IVLU)

Overview

The iShares Edge MSCI Intl Value Factor ETF (IVLU) seeks to track the performance of the MSCI EAFE Value Index, which comprises large and mid-cap equities in developed markets excluding the US and Canada that exhibit value characteristics. It is designed to provide investors with exposure to international stocks that are considered undervalued.

Reputation and Reliability

BlackRock, the issuer of iShares ETFs, is one of the world's largest asset managers with a long-standing reputation for reliability and a vast range of investment products.

Management Expertise

iShares ETFs are managed by BlackRock's experienced investment teams, leveraging extensive research and risk management capabilities.

Goal

To provide investors with exposure to international equities that are considered to be trading at a discount to their intrinsic value.

Investment Approach and Strategy

Strategy: The ETF aims to replicate the performance of the MSCI EAFE Value Index by holding a diversified portfolio of global equities that meet specific value criteria.

Composition The ETF primarily holds stocks of companies located in developed markets outside of the United States and Canada that are classified as 'value' stocks based on metrics such as price-to-book, price-to-earnings, and dividend yield.

Market Share: Market share data for individual ETFs is dynamic and often not publicly disclosed in a standardized format for precise calculation. However, iShares ETFs generally hold a significant portion of the ETF market.

Total Net Assets (AUM): 2540000000

Key Competitors

• iShares MSCI Intl Value ETF (IVAL)
• Vanguard FTSE Developed Markets ETF (VEA)
• iShares Core MSCI EAFE ETF (IEFA)

Competitive Landscape

The international developed markets ETF space is highly competitive, dominated by large players offering broad market exposure. IVLU competes by offering a specific value factor tilt, which may appeal to investors seeking differentiated international equity exposure. Its advantage lies in its targeted factor exposure, while a disadvantage might be its narrower focus compared to broader market ETFs, potentially leading to lower liquidity or higher tracking error.

Historical Performance: Past performance of IVLU shows a trend that generally follows its benchmark index, with variations due to the specific value factor methodology and expense ratio. Detailed year-over-year performance data requires access to real-time financial databases.

Benchmark Comparison: The ETF aims to track the MSCI EAFE Value Index, and its performance is typically measured against this benchmark. Deviations can occur due to tracking difference and expense ratios.

Expense Ratio: 0.22

Average Trading Volume

The ETF typically exhibits moderate average trading volume, indicating reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread for IVLU is generally tight, reflecting good liquidity and low transaction costs for active traders.

Market Environment Factors

IVLU is influenced by global economic conditions, currency fluctuations (as it invests in non-US dollar denominated assets), geopolitical events in developed markets, and investor sentiment towards value-oriented investments. Growth prospects for developed ex-US economies and interest rate environments also play a significant role.

Growth Trajectory

The ETF's growth trajectory is tied to the performance of value stocks in developed international markets. Its strategy remains focused on the MSCI EAFE Value Index, with potential changes to holdings driven by index rebalancing rather than active strategy shifts.

Competitive Edge

IVLU's competitive edge lies in its specialized focus on the value factor within developed international markets. This allows investors to target specific investment characteristics that may not be present in broader market indices. The iShares brand and BlackRock's extensive infrastructure provide a reliable and accessible platform for accessing this factor exposure. Its adherence to a well-established index methodology ensures transparency and predictability.

Volatility

The historical volatility of IVLU is generally in line with that of broad international equity markets, with potential for higher volatility during periods of significant market stress or when value stocks underperform growth stocks.

Market Risk

Specific risks include currency risk (fluctuations in exchange rates), political and economic instability in the countries where underlying companies are located, and the risk that value stocks may underperform growth stocks over extended periods.

Ideal Investor Profile

The ideal investor is one seeking to diversify their portfolio with international equities and specifically targeting undervalued companies in developed markets ex-US and Canada. Investors should have a moderate risk tolerance and a long-term investment horizon.

Market Risk

This ETF is best suited for long-term investors who want to implement a factor-based investment strategy in their international equity allocation.

The iShares Edge MSCI Intl Value Factor ETF (IVLU) provides targeted exposure to undervalued equities in developed international markets ex-US and Canada. Managed by BlackRock, it aims to track the MSCI EAFE Value Index, offering a transparent and cost-effective way to implement a value strategy. While facing competition, its specialized focus and the issuer's reputation are key advantages. Investors should be aware of currency and market-specific risks, but it serves as a valuable tool for long-term diversification.

Data Sources:

• iShares official website (BlackRock)
• MSCI Index Data
• Financial data aggregators (e.g., Morningstar, ETF.com)

Disclaimers:

This information is for informational purposes only and should not be considered investment advice. ETF performance can vary, and past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions. Data accuracy is subject to the availability and reliability of external sources.