Should iShares Morningstar Mid-Cap Value ETF (IMCV) Be on Your Investing Radar?

Designed to provide broad exposure to the Mid Cap Value segment of the US equity market, the iShares Morningstar Mid-Cap Value ETF (IMCV) is a passively managed exchange traded fund launched on June 28, 2004.The fund is sponsored by Blackrock. It has amassed assets over $857.01 million, making it one of the average sized ETFs attempting to match the Mid Cap Value segment of the US equity market.Why Mid Cap ValueMid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. Thus, companies that fall under this category provide a stable and growth-heavy investment.Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets. CostsWhen considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.Annual operating expenses for this ETF are 0.06%, making it the least expensive products in the space.It has a 12-month trailing dividend yield of 2.25%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Financials sector -- about 19.9% of the portfolio. Industrials and Utilities round out the top three.Looking at individual holdings, Capital One Financial Corp (COF) accounts for about 2.37% of total assets, followed by Newmont (NEM) and Us Bancorp (USB).The top 10 holdings account for about 12.35% of total assets under management.Performance and RiskIMCV seeks to match the performance of the MORNINGSTAR US MID CAP BROAD VALUE INDEX before fees and expenses. The Morningstar US Mid Cap Broad Value Index comprises of mid-capitalization U.S. equities that exhibit value characteristics.The ETF has added roughly 10.17% so far this year and is up about 8.77% in the last one year (as of 10/09/2025). In the past 52-week period, it has traded between $65.10 and $81.02.The ETF has a beta of 0.96 and standard deviation of 15.73% for the trailing three-year period. With about 286 holdings, it effectively diversifies company-specific risk.AlternativesiShares Morningstar Mid-Cap Value ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IMCV is a reasonable option for those seeking exposure to the Style Box - Mid Cap Value area of the market. Investors might also want to consider some other ETF options in the space.The iShares Russell Mid-Cap Value ETF (IWS) and the Vanguard Mid-Cap Value ETF (VOE) track a similar index. While iShares Russell Mid-Cap Value ETF has $14.19 billion in assets, Vanguard Mid-Cap Value ETF has $19.20 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%.Bottom-LineAn increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also 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 >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares Morningstar Mid-Cap Value ETF (IMCV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks