IVE Profile
The iShares S&P 500 Value ETF is designed to offer investors targeted exposure to the large-cap value segment of the U.S. equity market. The fund tracks an index that measures the performance of value stocks within the S&P 500, representing companies with relatively lower price-to-earnings ratios and higher dividend yields compared to their growth-oriented counterparts. This focus provides investors with access to established firms that are considered undervalued relative to their earnings potential.
The ETF aims to invest at least 80% of its assets in the securities included in its underlying index, as well as in investments with economic characteristics substantially similar to those of the index components. This investment strategy ensures that the fund closely mirrors the performance of the S&P 500 Value Index, while maintaining alignment with its value investment criteria. In addition to its core holdings, the fund may allocate up to 20% of its assets to futures, options, and swap contracts, as well as cash and cash equivalents. These additional investments provide flexibility for managing risk and liquidity.
The underlying index specifically targets large-cap value stocks, which are typically characterized by stable earnings, strong financials, and lower valuations relative to their intrinsic worth. By focusing on this segment of the market, the fund aims to capitalize on the potential for price appreciation and income generation associated with value investing. This approach can offer investors a balance of income and growth potential, leveraging the stability of established companies within the S&P 500.
Managed by BlackRock Fund Advisors (BFA), a leading global asset management firm, the iShares S&P 500 Value ETF benefits from BFA's deep expertise and comprehensive research capabilities. BFA’s management ensures that the fund effectively tracks its benchmark index, utilizing sophisticated portfolio management techniques to maintain accurate alignment with the value investment strategy. The ETF provides a cost-effective vehicle for investors seeking broad exposure to large-cap value stocks, aligning with long-term investment goals and enhancing portfolio diversification.
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