One US value fund returned 68% with Micron at 22.5%. The median returned 22%
In the 12 months through Tuesday, September 22, iShares MSCI USA Value Factor ETF VLUE returned 67.8%, against a 22.0% median for US Value Screen funds and 7.6% for Russell 1000 Growth.
Micron Technology, the memory-chip maker, returned 567% in the 12 months through Tuesday, September 22. It is now 22.5% of the MSCI USA value-factor fund VLUE, a 146-stock book that finished that window at 67.8%. The 42-fund US Value Screen category's median total return was 22.0%.
The Russell 1000 Value fund IWD returned 26.7% over those 12 months, with Amazon, Apple and Microsoft as its three largest holdings. The category's giant, the CRSP large-cap value fund VTV, holds $262 billion, 43% of the category's $605 billion, and returned 21.8%, with Micron at 3.9% beside JPMorgan Chase, Berkshire Hathaway and ExxonMobil. The Russell 1000 Growth fund IWF returned 7.6%, 19.1 percentage points behind IWD. Inside the category the 12-month range ran from VLUE's 67.8% to 11.2% for VanEck's wide-moat value fund MVAL, a 56.6-percentage-point spread. Schwab's large-cap value fund SCHV returned 19.8%; Fidelity's enhanced large-cap value fund FELV returned 28.1%.
Micron stayed in one value index and left another
VLUE and IWD share 141 names. They share 19.7% of their weight. The factor fund is 41% technology; Micron is roughly the size of its next nine holdings combined, and the top ten names are 45% of the book. The Russell fund is 870 stocks. Amazon is 6.1% of it, Apple 6.0%, Microsoft 5.0%: 17.1% in three companies that most investors still file under growth.
FTSE Russell's June reconstitution remade that Russell book. The 2026 style note assigned Apple 46% value and 54% growth from 100% growth, moved Microsoft to a 50/50 split from 100% growth, and shifted Amazon to 92% value from 27% a year earlier. Micron and SanDisk, which had been 100% value, were assigned 100% growth. The newly reconstituted indexes opened on Monday, June 29. By Tuesday, September 22, Micron was not among IWD's top ten names and did not appear in the shared book with VLUE. The MSCI factor index never made that transfer. It kept the position and let it become a fifth of the fund. On etf.net's published method, the Holdings pillar, which measures concentration and how complete the disclosed book is, ranks VLUE 41st of 42 in the category.
VTV sits between them. It tracks the CRSP US Large Cap Value Index, holds 331 stocks, and keeps 23% in financials. It still has Micron as its largest line, at 3.9%. Weight overlap with IWD is 60.1%, a much closer cousin than the factor fund, and the 12-month gap shows it: 21.8% against 26.7%. The Russell Top 200 Value fund IWX concentrated the reconstitution further. Amazon, Apple and Microsoft are 23.5% of that book, and it returned 29.3%.
The S&P 900 Value fund IUSV took the other fork. Apple is 7.8% of it, Amazon 3.7%, and Tesla sits in the top ten. Micron is not among the first ten names. The fund returned 15.5% over 12 months, trailing the S&P 500 fund SPY at 17.2%.
The same label covered a 22.5% Micron line, a mega-cap trio, and more than 1,400 small-cap names.
Cash-flow screens led a quieter quarter
From Tuesday, June 30 through September 22 the ranking inverted. The Pacer cash-flow fund COWZ returned 10.6%, against a 2.0% category median and 3.8% for SPY. Micron's three-month return was 3.6%. VLUE made 1.9% in the quarter after making 50.1% year to date. The year's outlier had a quiet 13 weeks.
COWZ holds 100 Russell 1000 companies chosen for trailing free-cash-flow yield and screens financials out. Energy is 12% of the book. Marathon Petroleum, the largest holding, returned 53% in the quarter and contributed 1.3 percentage points, the largest single line. Salesforce added 1.2 percentage points; Atlassian and Accenture each added close to 1 percentage point.
Small-cap value went the other way. VBR, IWN, and Vanguard's S&P Small-Cap 600 Value fund VIOV all finished lower.
COWZ returned 10.6%; small-cap value went negative
- +11%
- +6.3%
- +4.6%
- +3.8%
- +1.9%
- −1.6%
- −1.7%
- −3.2%
Both large small-cap books had made money on the year; both gave some of it back after June 30. IWD still led IWF in the quarter, 4.6% against 2.1%. The category median lagged the S&P 500 as the small-cap sleeve went negative.
The 12 months through September 22 settled what the label bought. One screen was a 22.5% bet on a memory-chip maker. One was Amazon, Apple and Microsoft after a reconstitution. One was banks, drugmakers, and a 3.9% Micron line. The quarter then paid a cash-flow book that owns no banks. The 42 funds still share a label. They still do not share a book.
Frequently asked
Why did VLUE return 67.8% when the category median was 22.0%?
It kept Micron, which returned 567% over the 12 months, and let the position grow to 22.5% of a 146-stock book.
Why does the Russell 1000 Value fund hold Amazon, Apple and Microsoft?
FTSE Russell's June reconstitution assigned Apple 46% value, Microsoft a 50/50 split and Amazon 92% value, and those three are now 17.1% of the fund.
Did Micron stay in every value index?
No, the June reconstitution moved Micron and SanDisk to 100% growth, while the MSCI factor index kept the position.
What led the quarter from June 30 through September 22?
COWZ returned 10.6% against a 2.0% category median, while VLUE made 1.9% and the small-cap value funds finished lower.