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IUSV: Here's How This ETF Will Change When It Switches Benchmarks

There are implications for the fund's risk level, composition and dividend yield.

The benchmark for one of iShares' billion dollar equity funds - the iShares Core Russell U.S. Value ETF (IUSV) - is about to change next month and that could result in a significantly different looking fund for shareholders. The fund is currently benchmarked to the Russell 3000 Value Index. In January 2017, it will switch to the S&P 900 Value Index. Upon the switch, the fund will change its name to the iShares Core S&P U.S. Value ETF. The ticker and expense ratio are expected to stay the same.

What won't remain the same is the composition of the fund. It may seem like a subtle change on the surface but underneath there are implications for the fund's risk level, composition and dividend yield.

Methodology

The biggest difference between the two indices is that the S&P 900 Value index will skew towards larger companies. The Russell 3000 is a combination…

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TAGS: ETF Analysis
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