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

The iShares Russell 1000 Value ETF (IWD) was launched on May 22, 2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.The fund is sponsored by Blackrock. It has amassed assets over $76.02 billion, making it one of the largest ETFs attempting to match the Large Cap Value segment of the US equity market.Why Large Cap ValueCompanies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.Carrying lower than average price-to-earnings and price-to-book ratios, value stocks 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. CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.Annual operating expenses for this ETF are 0.18%, making it one of the cheaper products in the space.It has a 12-month trailing dividend yield of 1.5%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. 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 18.5% of the portfolio. Information Technology and Industrials round out the top three.Looking at individual holdings, Berkshire Hathaway Inc Class B (BRK.B) accounts for about 2.86% of total assets, followed by Jpmorgan Chase & Co (JPM) and Exxon Mobil Corp (XOM).The top 10 holdings account for about 19.29% of total assets under management.Performance and RiskIWD seeks to match the performance of the Russell 1000 Value Index before fees and expenses. The Russell 1000 Value Index measures the performance of the large-capitalization value sector of the U.S. equity market.The ETF has added about 14.17% so far this year and is up roughly 28.58% in the last one year (as of 06/03/2026). In the past 52-week period, it has traded between $188.77 and $239.32.The ETF has a beta of 0.84 and standard deviation of 12.76% for the trailing three-year period, making it a medium risk choice in the space. With about 871 holdings, it effectively diversifies company-specific risk.AlternativesiShares Russell 1000 Value ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWD is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well. The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value Index Fund ETF Shares (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $94.59 billion in assets, Vanguard Value Index Fund ETF Shares has $178.84 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.03%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks