(IMCV) Morningstar Mid-Cap Value - Overview

The iShares Morningstar Mid-Cap Value ETF (NASDAQ: IMCV) is required to allocate at least 80 % of its net assets to the securities that compose its benchmark, the Morningstar U.S. Mid-Cap Value Index, or to securities that are economically indistinguishable from those components. The index targets U.S. mid-cap companies that Morningstar classifies as “value” based on its proprietary methodology (e.g., low price-to-earnings, price-to-book, and high dividend yields relative to peers).

As of the most recent filing (Q2 2024), IMCV holds roughly $1.2 billion in assets under management, carries an expense ratio of 0.25 %, and distributes a trailing-12-month dividend yield of about 2.1 %. The fund’s top sector exposures are Financials (~30 %), Industrials (~20 %), and Consumer Discretionary (~15 %). Performance-wise, the ETF has returned +6.3 % YTD and +12.5 % over the past 12 months, outpacing the broader mid-cap index by roughly 150 bps.

Key drivers for mid-cap value stocks include the Federal Reserve’s policy stance (higher rates tend to favor cash-generating, low-growth firms), corporate earnings resilience in the face of modest inflation, and sector-specific tailwinds such as rising loan demand for financials and equipment spending for industrials. A slowdown in rate hikes or a shift toward growth-oriented capital allocation could materially affect the ETF’s upside potential.

For a deeper, data-rich comparison of IMCV’s valuation metrics against peer funds, you might explore the ValueRay platform’s interactive screens.