- IUSV uses the S&P 900 Value Index, the benchmark that is supposed to comprise 'cheap' equities selected from the S&P 900.
- We see a classic, rather minimalist approach as only six ratios are used to define a stock's fate, three on the value side and three on the growth side.
- IUSV's sector mix is dominated by financials that account for close to 21% of the net assets.
- What I can say for sure is that IUSV is a much better choice for exposure to U.S. large-cap/mid-cap 'cheap' stocks than IWD that I have dissected recently. The latter uses one value indicator, perhaps, the worst possible, Price/Book, while it charges 19 bps.
- However, given the vulnerabilities of the strategy, I rate the ETF only as a Hold.
For further details see:
IUSV: Better Than IWD But Still Burdened With Issues