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)	$4,726
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	148
Wgt avg mkt cap (mns)	$101,065
Large cap (>$10bn)	91.1%
Mid cap ($2-10bn)	8.9%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	37.7 %
INTEL CORP	8.1 %
AT&T INC	7.9 %
MICRON TECHNOLOGY INC	3.6 %
INTL BUSINESS MACHINES CORP	3.5 %
BANK OF AMERICA CORP	3.3 %
CITIGROUP INC	2.9 %
PFIZER INC	2.5 %
GENERAL MOTORS CO	2.2 %
CVS CAREMARK CORP	1.9 %
WALGREENS BOOTS ALLIANCE INC	1.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	94.4 %
	IRELAND	4.2 %
	BRITAIN	1.0 %
	BERMUDA	0.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
27.2%	27.2%	9.0%	--	11.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.15	90%
MSCI EAFE	1.06	63%
MSCI Emg. Mkts.	0.71	48%

Technical Indicators
Recent close	$89.94
30d moving avg.	$89.12
Annualized volatility	14.7%
Short interest (ETF)	0.0%
Short interest (Underlying)	3.1%
Relative strength (RSI)	68

Liquidity measures
Avg. volume (thou.)	443
Turnover	0.8%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$25,435

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™:

10.4%

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	47.6	13	2	10.2	-0.2
FTA	First Trust Large Cap Value	35.7	62	-47	8.2	-2.2
OVLU	Invesco Russell 1000 Value Factor ETF	35.0	19	-4	7.5	-2.9
VALQ	American Century STOXX U.S. Quality Value	34.5	29	-14	8.7	-1.7
ULVM	USAA MSCI USA Value Momentum Blend Index	34.4	20	-5	7.1	-3.4
JVAL	JPMorgan U.S. Value Factor	34.0	12	3	8.2	-2.2
REVS	Columbia Research Enhanced Value	33.9	19	-4	7.2	-3.2
RPV	Invesco S&P 500 Pure Value ETF	33.7	35	-20	10.5	+0.1
ESGL	Invesco ESG Revenue ETF	33.3	40	-25	7.6	-2.8
FVAL	Fidelity Value Factor	33.1	29	-14	7.6	-2.8
PWV	Invesco Dynamic Large Cap Value	33.0	55	-40	8.1	-2.3
JKF	iShares Morningstar Large Value	32.7	25	-10	7.4	-3.0
DYNF	BlackRock U.S. Equity Factor Rotation	31.8	30	-15	6.2	-4.2
RWL	Invesco S&P 500 Revenue ETF	30.8	39	-24	7.2	-3.2
LRGF	iShares FactorSelect MSCI USA	29.8	20	-5	6.7	-3.8
FLAG	Forensic Accounting	29.2	152	-137	8.2	-2.3
VFVA	Vanguard U.S. Value Factor	29.1	13	2	8.9	-1.5
VTV	Vanguard Value ETF	28.4	4	11	6.9	-3.5
VLU	SPDR S&P 1500 Value Tilt	28.4	12	3	7.1	-3.4
RNDV	US Equity Dividend Select	28.2	50	-35	7.3	-3.1

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	15.1	%
Divided by: Fwd. P/BV	1.4	x
Less: Expense ratio	15	bp
Equals: ALTAR Score	10.4	%

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.