FELV vs IUSV

FELVBFidelity Enhanced Large Cap Value ETF

IUSVAiShares Core S&P U.S. Value ETF

In short

FELV Index-fund shape, active brain. Fidelity's quant models tilt roughly 300 large-cap value stocks while the Russell 1000 Value stays the yardstick, and the whole thing costs 0.18%, the median fee in its peer group.

IUSV A value fund with a wider net: it tracks the S&P 900 Value Index, which screens S&P 500 and MidCap 400 stocks on book value, earnings and sales versus price. Roughly 700 names, 0.04% a year, running since 2000.

Stated mandate

FELV The fund is a diversified domestic equity strategy focused on large-cap value stocks. It uses quantitative, multifactor statistical models to seek benchmark outperformance.

IUSV The fund seeks to track the S&P 900 Value Index, which represents large- and mid-capitalization U.S. value equities. Value characteristics are identified using book value, earnings, and sales relative to price.

Why people hold it

• FELV Quantitative multifactor models choose the holdings, but the Russell 1000 Value Index remains the benchmark, so the portfolio still looks and behaves like US large-cap value.
• At 0.18%, it costs exactly the median of its value-factor peer group, unusual for a strategy that actively tries to beat its index rather than match it.
• Same 0.18% as IWD, the plain tracker on the same Russell 1000 Value benchmark, so the active tilt is not priced at a premium to that route.
• A multi-billion-dollar fund spread across about 300 large-cap names, paying quarterly, run under a strategy whose track record starts at its 2007 launch.

• IUSV Costs 0.04% a year, a fraction of the typical US value ETF, and level with the cheapest of its large peers like SCHV.
• The index reaches past the S&P 500 into the S&P MidCap 400, so mid-cap value names come along. Large-cap-only rivals such as SCHV stop short of them.spindices.com
• A 2000 vintage and now a multi-billion-dollar iShares Core holding: it trades actively, tracks its index closely, and pays quarterly.

Worth knowing

• FELV Plain-vanilla value beta is cheaper: VTV charges 0.03% and SCHV 0.04%. The quant tilt costs several times that.
• Aiming to beat the Russell 1000 Value means results can diverge from it in either direction, which a straight index tracker will not do.
• Moderately traded rather than a volume leader in its category, so spreads on larger orders can run wider than at the busiest value ETFs.

• IUSV S&P's style system splits the parent index by formula, and stocks with both value and growth traits can sit in each. This is the cheap half of the market, not a deep-value sleeve.spglobal.comspglobal.com 2
• The screen is pure price ratios (book value, earnings, sales), with no profitability or quality filter, so cheap-for-a-reason names are part of the deal.spglobal.com
• Holdings are float-market-cap weighted, so the biggest value names drive most of the movement.spglobal.com

Full FELV profile⁠

Full IUSV profile⁠