(SVAL) iShares US Small Cap Value - Ratings and Ratios

The iShares US Small Cap Value Factor ETF (BATS:SVAL) is designed to track the performance of small-capitalization U.S. companies that exhibit strong value characteristics. The funds underlying index identifies these companies based on metrics such as price-to-earnings ratio, price-to-book ratio, and dividend yield. SVAL typically allocates at least 80% of its assets to securities included in its underlying index, providing direct exposure to small-cap value stocks. The remaining 20% may be invested in derivatives like futures and options, as well as cash and cash equivalents, to enhance returns or hedge positions.

The ETF focuses on small-cap companies, which are generally defined as firms with market capitalizations between $300 million and $2 billion. These companies often represent growth opportunities but come with higher volatility compared to larger-cap equities. The funds value factor emphasis targets undervalued stocks, historically providing a different return profile compared to growth-oriented investments. SVALs structure allows it to capitalize on the potential upside of small-cap value stocks while maintaining flexibility through its use of derivatives and cash positions.

Based on the provided data, SVALs technical and fundamental indicators suggest the following 3-month outlook: