ISCV Profile
The iShares Morningstar Small-Cap Value ETF is designed to offer investors targeted exposure to small-cap companies that exhibit strong value characteristics. The fund is committed to investing at least 80% of its assets in the component securities of its underlying index, along with other investments with similar economic characteristics. This strategy ensures that the funds performance is closely aligned with the index, which focuses on identifying small-cap stocks that are undervalued relative to their intrinsic worth.
The underlying index is a benchmark that measures the performance of small-capitalization companies distinguished by their value attributes. Morningstar, Inc.s proprietary index methodology evaluates these companies based on various value metrics, such as low price-to-earnings ratios, high dividend yields, and attractive price-to-book ratios. By targeting firms with these value characteristics, the index aims to capture opportunities in stocks that are considered undervalued compared to their financial fundamentals.
Small-cap stocks, generally characterized by market capitalizations smaller than larger, established companies, are the focus of this ETF. These stocks often trade at lower valuations relative to their earnings or book value, providing potential upside for investors willing to accept higher volatility and risk. The funds emphasis on value characteristics means it selects companies that may be overlooked by growth-oriented investors but present compelling opportunities based on their undervaluation and financial stability.
Managed by BlackRock, the iShares Morningstar Small-Cap Value ETF benefits from the firms extensive experience in small-cap and value investing. BlackRocks team utilizes a disciplined approach to ensure that the ETF adheres to the value-focused strategy of its underlying index, leveraging in-depth research and market analysis to identify high-potential investment opportunities. For investors seeking to capitalize on undervalued small-cap stocks, this ETF offers a strategic avenue to access a portfolio of promising companies with significant growth potential, while managing associated risks.
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