ETF Research Center

The iShares MSCI USA Value Weighted Index Fund is an exchange-traded fund incorporated in the USA. The Fund seeks to track the performance of an index that measures the performance of U.S. large- and mid-capitalization stocks with value characteristics and relatively lower valuations, before fees and expenses.

FUND BASICS
Category	US Equities
Fund Sponsor	iShares/USA
Website	www.ishares.com
Inception date	Apr 18, 2013
Assets (mns)	$4,177
Currency	USD
Expense ratio	15 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Fundamental
Index replication	Full
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	149
Wgt avg mkt cap (mns)	$101,907
Large cap (>$10bn)	89.7%
Mid cap ($2-10bn)	10.4%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	39.9 %
AT&T INC	9.4 %
INTEL CORP	8.2 %
INTL BUSINESS MACHINES CORP	3.5 %
MICRON TECHNOLOGY INC	3.2 %
BANK OF AMERICA CORP	3.1 %
CITIGROUP INC	2.7 %
CHEVRON CORP	2.6 %
GENERAL MOTORS CO	2.5 %
PFIZER INC	2.5 %
WALGREENS BOOTS ALLIANCE INC	2.3 %

TOP COUNTRY EXPOSURE
	UNITED STATES	94.1 %
	IRELAND	4.2 %
	BRITAIN	1.0 %
	SINGAPORE	0.3 %
	BERMUDA	0.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru October 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
18.8%	5.1%	8.1%	--	10.5%

Market Correlations
versus...	Beta	R-squared
S&P500	1.17	89%
MSCI EAFE	0.98	53%
MSCI Emg. Mkts.	0.65	38%

Technical Indicators
Recent close	$87.12
30d moving avg.	$83.67
Annualized volatility	15.0%
Short interest (ETF)	0.0%
Short interest (Underlying)	3.1%
Relative strength (RSI)	75

Liquidity measures
Avg. volume (thou.)	464
Turnover	1.0%
Bid/Ask (% of price)	0.03%
ADV underlying (mns)	$27,310

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the iShares MSCI USA Value Factor ETF based on the alternatives' overlap in portfolio holdings with VLUE. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

VLUE

Expense:

15 bp

ALTAR Score™:

11.0%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VLUE
Ticker	Fund Name	Overlap¹ vs VLUE (%)	Expense ratio (bp)	Savings vs VLUE (bp)	ALTAR Score™ (%)	ALTAR vs VLUE (%)
SPVU	Invesco S&P 500 Value	47.4	13	2	11.1	+0.1
RPV	Invesco S&P 500 Pure Value ETF	37.1	35	-20	9.8	-1.2
OVLU	Invesco Russell 1000 Value Factor ETF	37.0	19	-4	7.9	-3.0
FTA	First Trust Large Cap Value	36.5	62	-47	8.7	-2.2
PWV	Invesco Dynamic Large Cap Value	36.0	55	-40	8.0	-3.0
ULVM	USAA MSCI USA Value Momentum Blend Index	34.8	20	-5	7.8	-3.2
FVAL	Fidelity Value Factor	34.6	29	-14	8.2	-2.8
JVAL	JPMorgan U.S. Value Factor	33.5	12	3	8.6	-2.4
JKF	iShares Morningstar Large Value	33.1	25	-10	7.8	-3.2
RWL	Invesco S&P 500 Revenue ETF	32.1	39	-24	7.5	-3.4
VALQ	American Century STOXX U.S. Quality Value	31.9	29	-14	7.7	-3.3
LRGF	iShares FactorSelect MSCI USA	31.7	20	-5	7.4	-3.6
PXLV	Invesco Fundamental Pure Large Value	31.2	39	-24	8.4	-2.5
IWX	iShares Russell Top 200 Value	30.7	20	-5	7.0	-4.0
VLU	SPDR S&P 1500 Value Tilt	30.5	12	3	7.5	-3.5
ESGL	Invesco ESG Revenue ETF	30.3	40	-25	7.8	-3.1
FLAG	Forensic Accounting	29.9	152	-137	8.6	-2.4
OYLD	Invesco Russell 1000 Yield Factor ETF	29.9	19	-4	7.1	-3.9
VFVA	Vanguard U.S. Value Factor	29.8	13	2	9.5	-1.5
FDL	First Trust Morningstar Dividend Leaders	29.7	45	-30	8.6	-2.4

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	iShares MSCI USA Value Factor
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	15.6	%
Divided by: Fwd. P/BV	1.4	x
Less: Expense ratio	15	bp
Equals: ALTAR Score	11.0	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.60	CATEGORY AVERAGE	1.55

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.