Core Insights - The iShares MSCI USA Value Factor ETF (VLUE) is a smart beta ETF that debuted on April 16, 2013, providing broad exposure to the Style Box - Large Cap Value category [1] - VLUE is managed by Blackrock and has accumulated over $7.2 billion in assets, making it one of the larger ETFs in its category [5] - The fund seeks to match the performance of the MSCI USA Enhanced Value Index, which is based on a traditional market capitalization-weighted index [5] Cost and Expenses - VLUE has an annual operating expense of 0.15%, positioning it as one of the least expensive options in the market [6] - The fund offers a 12-month trailing dividend yield of 2.51% [6] Sector Exposure and Holdings - The Information Technology sector represents 32.6% of VLUE's portfolio, followed by Financials and Consumer Discretionary [7] - Cisco Systems Inc (CSCO) is the largest holding at approximately 7.16%, with the top 10 holdings accounting for about 33.85% of total assets [8] Performance Metrics - As of September 10, 2025, VLUE has increased by approximately 15.04% year-to-date and 17.58% over the past year [10] - The fund has a beta of 0.98 and a standard deviation of 16.67% over the trailing three-year period, indicating medium risk [10] Alternatives - Other ETFs in the same space include Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard Value ETF (VTV), with SCHD having $71.46 billion in assets and VTV at $144.33 billion [12] - SCHD has an expense ratio of 0.06% and VTV at 0.04%, presenting lower-cost alternatives for investors [12]

Core Viewpoint - Value investing is gaining traction due to optimism about potential rate cuts and a downturn in the tech sector [1][4] Market Dynamics - U.S. technology stocks have faced a significant sell-off, with a reported loss of $1 trillion, driven by skepticism regarding the sustainability of the AI boom and caution from industry leaders [2][4] - A shift in investor sentiment has led to a rotation from tech stocks to defensive value-oriented sectors such as consumer staples, healthcare, and utilities [4] Rate Cut Expectations - Market expectations are increasing that the Federal Reserve may begin cutting interest rates, with futures indicating two 25-basis point reductions possibly starting in September [5] Valuation Trends - Growth stocks, particularly in tech and AI, are currently trading at high valuations, while value stocks in sectors like healthcare, financials, and industrials are trading at significant discounts, providing a margin of safety for investors [6][7] Notable Investments - Warren Buffett's investment in UnitedHealth, amounting to $1.57 billion, has sparked interest in the healthcare sector, which is noted to be trading at its greatest discount in 30 years relative to the broader market [7] Investment Opportunities - Investors are encouraged to consider value ETFs that are positioned to benefit from the current market rotation, with several funds showing positive performance [8][9]

Group 1 - The iShares MSCI USA Value Factor ETF (VLUE) has reached a 52-week high, increasing 28% from its low of $91.80 per share [1] - VLUE provides exposure to large and mid-cap U.S. stocks with lower valuations, focusing on sectors like information technology, financials, and consumer discretionary [1] - The ETF charges an annual fee of 15 basis points [1] Group 2 - The recent movement in the value segment of the U.S. stock market is attributed to uncertain trade policies, a decline in tech stocks, and speculation around Federal Reserve interest rate cuts [2] - Value stocks are seen as a safer investment during market turbulence due to their potential for higher returns with lower volatility and their dividend payouts [2] - Rate cuts are expected to benefit value stocks, further enhancing their appeal [2] Group 3 - VLUE holds a Zacks ETF Rank 1 (Strong Buy), indicating potential for continued outperformance in the coming months [3] - The sectors represented in VLUE have strong Zacks Industry Ranks, suggesting promising prospects for investors [3]

Core Viewpoint - The iShares MSCI USA Value Factor ETF (VLUE) is a passively managed ETF that provides broad exposure to the Large Cap Value segment of the US equity market, with significant assets under management and low operating costs [1][4]. Group 1: ETF Overview - VLUE was launched on April 16, 2013, and is sponsored by Blackrock, accumulating over $6.79 billion in assets [1]. - The ETF targets large cap companies, defined as those with market capitalizations above $10 billion, which are generally considered stable investments [2]. Group 2: Value Stocks Characteristics - Value stocks typically exhibit lower price-to-earnings and price-to-book ratios, but also have lower sales and earnings growth rates compared to growth stocks [3]. - Historically, value stocks have outperformed growth stocks in most markets, although they may underperform during strong bull markets [3]. Group 3: Cost and Performance - VLUE has an annual operating expense ratio of 0.15% and a 12-month trailing dividend yield of 2.62%, making it one of the least expensive ETFs in its category [4]. - The ETF aims to match the performance of the MSCI USA Enhanced Value Index, achieving a return of approximately 10.10% year-to-date and 9.55% over the past year as of July 23, 2025 [7]. Group 4: Sector Exposure and Holdings - The ETF has a significant allocation to the Information Technology sector, comprising about 33% of the portfolio, followed by Financials and Consumer Discretionary [5]. - Cisco Systems Inc (CSCO) is the largest holding at approximately 6.88% of total assets, with the top 10 holdings accounting for about 33.86% of total assets under management [6]. Group 5: Risk and Diversification - VLUE has a beta of 0.95 and a standard deviation of 16.92% over the trailing three-year period, indicating a medium risk profile [8]. - The ETF holds around 154 different stocks, effectively diversifying company-specific risk [8]. Group 6: Alternatives - Other ETFs in the same space include the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV), which have larger asset bases and lower expense ratios [11]. Group 7: Conclusion - Passively managed ETFs like VLUE are increasingly popular due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investors [12].