Should iShares Russell 1000 Value ETF (IWD) Be on Your Investing Radar?

Core Viewpoint - The iShares Russell 1000 Value ETF (IWD) is a significant player in the Large Cap Value segment of the US equity market, with over $62.49 billion in assets, making it one of the largest ETFs in this category [1] Group 1: ETF Overview - Launched on 05/22/2000, IWD is designed to provide broad exposure to the Large Cap Value segment of the US equity market [1] - The ETF is sponsored by Blackrock, indicating a strong backing from a reputable financial institution [1] Group 2: Investment Characteristics - Large cap companies typically have a market capitalization above $10 billion, offering stability and more reliable cash flows compared to mid and small cap companies [2] - Value stocks, characterized by lower price-to-earnings and price-to-book ratios, have historically outperformed growth stocks in most markets, although growth stocks tend to perform better in strong bull markets [3] Group 3: Cost and Performance - IWD has annual operating expenses of 0.19%, positioning it as one of the more cost-effective options in the ETF space [4] - The ETF has a 12-month trailing dividend yield of 1.86% [4] - As of 07/21/2025, IWD has gained approximately 6.69% year-to-date and about 10.21% over the past year, with a trading range between $166.82 and $199.79 in the last 52 weeks [7] Group 4: Sector Exposure and Holdings - The ETF has a significant allocation to the Financials sector, comprising about 23.80% of the portfolio, followed by Industrials and Healthcare [5] - Berkshire Hathaway Inc Class B (BRK.B) is the largest holding at approximately 3.53% of total assets, with the top 10 holdings accounting for about 17.07% of total assets under management [6] Group 5: Risk Profile - IWD has a beta of 0.88 and a standard deviation of 15% over the trailing three-year period, categorizing it as a medium risk investment [8] - The ETF consists of about 871 holdings, effectively diversifying company-specific risk [8] Group 6: Alternatives - IWD holds a Zacks ETF Rank of 1 (Strong Buy), indicating strong expected performance based on various factors [9] - Other comparable ETFs include Schwab U.S. Dividend Equity ETF (SCHD) with $70.54 billion in assets and Vanguard Value ETF (VTV) with $139.18 billion, both of which have lower expense ratios [10] Group 7: Conclusion - Passively managed ETFs like IWD are favored by both institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency [11]