VLUE’s Holdings: 2015 Performance Breakdown



Strong value stocks

The iShares MSCI USA Value Factor ETF (VLUE) seeks to track the investment results of the MSCI USA Enhanced Value Index, an underlying index that composed of stocks with high valuation ratings. These companies’ valuation ratings are determined by three factors:

  1. PB (price-to-book) ratio
  2. PE (price-to-earnings) ratio
  3. PC (price-to-cashflow) ratio

VLUE’s top holdings include Pfizer (PFE), Intel Corporation (INTC), Chevron (CVX), JPMorgan Chase (JPM), and Bank of America Corporation (BAC). The graph below shows VLUE’s NAV (net asset value) performance.

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VLUE’s performance snapshot

VLUE currently manages total net assets of $628 million that are distributed over 149 securities. The fund is very new to the market—launched only two years ago, on April 16, 2013—but has since then given a total return of 14.83% to its investors. As of September 23, 2015, the fund has given an annual total return of 5.31%.

Holdings’ performances

VLUE’s top holdings performed poorly during the period of September 15–22, 2015. Pfizer and JPMorgan Chase declined by 1.13% and 1.72%, respectively. General Motors Company (GM), one of VLUE’s top five holdings, declined drastically, by 4.15%, in the same period. Intel too declined by 0.95% but, to an extent, saw a more controlled drop, compared with other top stocks.

Read on to the next part of this series, wherein we’ll compare VLUE’s performance with that of the PowerShares BuyBack Achievers Portfolio (PKW).


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