Is iShares Core S&P U.S. Value ETF (IUSV) a Strong ETF Right Now?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 09 2024
0mins
Should l Buy XOM?
Source: NASDAQ.COM
Overview of iShares Core S&P U.S. Value ETF (IUSV): Launched in 2000 and managed by Blackrock, IUSV is the largest ETF in the Style Box - All Cap Value category with over $19.23 billion in assets, aiming to match the performance of the S&P 900 Value Index while maintaining low operating expenses of 0.04%.
Performance and Holdings: The ETF has shown a return of approximately 30.02% over the past year, with significant allocations in the Financials sector and major holdings including Berkshire Hathaway, JPMorgan Chase, and Exxon Mobil, effectively diversifying company-specific risk across 736 holdings.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 150.440
Low
114.00
Averages
132.17
High
158.00
Current: 150.440
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Shareholder Rights Protection: The proposed redomiciliation will not affect business operations, management, strategy, assets, or employee locations, with the Board confirming that shareholder rights under Texas law are largely comparable to those in New Jersey, and in some areas, stronger.
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See More
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- Core CPI Performance: Excluding food and energy prices, the core CPI increased by 0.2% monthly and 2.5% annually, both meeting market forecasts, suggesting that underlying inflation remains stable, which could influence future monetary policy decisions.
- Rising Housing Costs: Housing costs, the largest component of CPI, rose 0.2% in February, with an annual rate of 3%, while rent increased only 0.1%, marking the smallest monthly gain since January 2021, reflecting moderate demand in the housing market.
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- Fuel Price Increases: Gas prices in the U.S. have surpassed $3 per gallon, with two significant 12-cent increases nationwide in the past two weeks, creating consumer anxiety that may suppress driving and travel demand, thereby affecting auto sales.
- Aluminum Supply Tightness: Bahrain and the UAE account for 9% of global aluminum smelting, with the U.S. relying on imports for 80% to 90% of its aluminum, 20% from the Gulf, and rising aluminum prices, a key material for lightweight vehicles, will further inflate manufacturing costs, impacting electric and hybrid vehicle production.
- Industry Transition Challenges: Automakers are grappling with the fallout from the Iran conflict while incurring billions in tariff costs due to trade disputes, as the industry navigates dual transitions towards profitable electric vehicles and new hardware/software rollouts, lacking effective strategies to address supply chain crises, leading to resource strain and production instability.
See More
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- Strong ETF Performance: The State Street Energy Select Sector SPDR ETF (XLE) has surged over 20% year-to-date, driven by the geopolitical tensions following the U.S. and Israel's attack on Iran, presenting lucrative investment opportunities for investors.
- Concentration in Major Holdings: The ETF's assets are heavily concentrated, with 48% held in three energy giants—ExxonMobil (XOM), Chevron (CVX), and ConocoPhillips (COP)—which are pivotal players in the global energy market, ensuring stability and growth potential for the ETF.
- Market Risks and Defensive Strategy: Given the potential for significant oil price fluctuations due to the Middle East crisis, the diversified business models of the State Street Energy Select SPDR ETF provide a relatively safe investment option, particularly in the event of declining oil prices.
- Attractive Valuation and Yield: With a price-to-earnings ratio of 20x, below the S&P 500's 29x, and a distribution yield of 2.6%, the ETF demonstrates strong appeal in the current market environment, offering solid income regardless of oil price volatility.
See More
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- Strong ETF Performance: The State Street Energy Select Sector SPDR ETF has surged over 20% year-to-date, reflecting strong investor interest in energy stocks following the Middle East crisis, indicating a growing confidence in the energy sector.
- Key Holdings Analysis: The ETF's top three holdings, ExxonMobil, Chevron, and ConocoPhillips, account for 48% of total assets, positioning these major players to provide stability in earnings during potential oil price declines.
- Attractive Valuation: Despite the recent rise in oil prices, the ETF's price-to-earnings ratio stands at only 20x, significantly lower than the S&P 500's 29x, highlighting its relative undervaluation and appealing to value-seeking investors.
- Stable Income: With a distribution yield of 2.6%, the ETF offers investors a reliable income source amidst fluctuations in oil and gas prices, enhancing its appeal as a defensive investment option.
See More
