(JKI) Morningstar Mid-Cap Value - Overview

The iShares Morningstar Mid-Cap Value ETF (NASDAQ: JKI) aims to replicate the Morningstar US Mid-Cap Broad Value Index, which selects U.S. mid-cap stocks that Morningstar’s proprietary methodology classifies as “value” based on metrics such as low price-to-earnings and price-to-book ratios. The fund invests at least 90 % of its net assets in the index constituents or their depositary receipts, seeking to deliver performance that closely matches the index’s total-return results.

Key quantitative snapshots (as of January 2026):
• Expense ratio ≈ 0.35 % (below the industry median for mid-cap value ETFs).
• Assets under management ≈ $2.1 billion, reflecting modest inflows since the 2022 market correction.
• Top five holdings (≈ 12 % of the portfolio) include **Caterpillar Inc.**, **Cigna Corp.**, **Parker-Hannifin Corp.**, **KeyCorp**, and **MGM Resorts International**, indicating a tilt toward industrials, health-care, and financials.
• Sector weighting: Financials ≈ 25 %, Industrials ≈ 20 %, Health-Care ≈ 15 %, Consumer Discretionary ≈ 12 %.

From a macro-economic perspective, mid-cap value stocks have historically outperformed growth peers in a rising-interest-rate environment because their earnings are perceived as more resilient to higher borrowing costs. As of early 2026, the Federal Reserve’s policy rate sits near 5.25 %, and corporate profit growth for mid-cap firms is projected at 4.2 % YoY (S&P Mid-Cap Index consensus). These conditions provide a tailwind for JKI’s underlying index, though the outlook remains sensitive to any unexpected monetary-policy easing or a sharp slowdown in U.S. consumer spending.

For a deeper dive into how ValueRay evaluates mid-cap value ETFs, you may want to explore its methodology.