iShares MSCI USA Value Factor ETF

The iShares MSCI USA Value Factor ETF (VLUE) is a BlackRock index fund that tracks the MSCI USA Enhanced Value Index. That index holds about 150 large and mid-sized U.S. companies that look cheap compared with others in their sector. The fund charges 0.15% a year, below the 0.27% average for similar value funds. It is also unusually concentrated: as of July 31, 2026, Micron Technology alone made up about 19% of the fund.

• Over the year to Oct 27, 2026, VLUE returned +53.1%, 1st of 9 among similar funds.
• Its 5-year annualized return was +17.0%.
• Its worst full calendar year was 2022 (-14.2%); its best was 2025 (+32.7%).
• The deepest fall in its price history was 27.1% (Jan 14, 2022 to Sep 30, 2022), recovered by Mar 27, 2024.

As of Jul 31, 2026, the fund held 151 securities; the ten largest made up 42.48% of assets.

By sector

• Over the three months to Jul 31, 2026, investors withdrew a net $4.90B (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +18.60%, +1.30%, -4.51%.

VLUE follows the MSCI USA Enhanced Value Index. That index is built from a broader parent index, the MSCI USA Index, which covers large and mid-sized U.S. companies. MSCI gives each stock a "value score" based on three measures. Price-to-book compares the share price with the company's net worth on its books. Price-to-forward earnings compares the price with expected profits. Enterprise value-to-operating cash flow compares the whole company's value with the cash its business brings in. Each stock is scored against others in its own sector, so a bank is judged against banks.

A stock's weight is its value score multiplied by its market value. MSCI then adjusts the weights so each sector takes up the same share as it does in the parent index. MSCI reviews the number of holdings twice a year. There were 149 stocks in the index as of July 31, 2025. Because company size still drives the weights, one stock can grow very large. Micron Technology was about 19% of the fund's assets as of July 31, 2026.

BlackRock uses "representative sampling." That means the fund may not own every stock in the index, but it aims to match the index's overall profile. At least 80% of assets go into index stocks. Up to 20% can go into futures, cash or other holdings. The fund may also lend up to one-third of its assets to other investors for a fee. Portfolio turnover, the share of holdings replaced during the year, was 30%.

• VLUE charges 0.15% a year, versus an average of 0.27% for the similar funds below (2nd of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $15 in the first year and $192 over 10 years (assuming a 5% annual return).

Its value tilt, its swings (over the year to October 27, 2026 it moved about 1.2 times as much as the market) and one stock near 19% of assets suit a smaller side position better than a core one.

VLUE could add a tilt toward lower-priced U.S. stocks next to a broad core fund, but its swings can be large. The fund didn't exist during the 2008 crisis. In the 2020 COVID crash, it lost 29.2% in the quarter ended March 31, 2020. In the 2022 bear market, it fell 27.1% from January 14 to September 30, 2022. It took about 18 months, until March 27, 2024, to recover. Its worst calendar year was 2022, down about 14%. Selling shares for spending in a year like that would lock in losses.

The yield was 1.57% as of October 27, 2026, paid quarterly, so the fund is not a major source of income. Under the SEC's standard example, the 0.15% expense ratio costs about $15 in the first year on $10,000. Past results don't predict future ones. A retirement plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.