ETF Watch: 2 iShares Core Funds To Change Indexes

Two of the funds in iShares’ Core family of low-cost ETFs aimed at advisors will change their names and underlying indexes on Jan. 23, 2017. The iShares Core Russell U.S. Value ETF (IUSV) and the iShares Core Russell U.S. Growth ETF (IUSG) will both adopt indexes from S&P Dow Jones Indices.

While IUSV and IUSG currently track the value and growth subindexes of the broad-market Russell 3000, their new indexes will be derived from the S&P 900, which combines the S&P 500 with the S&P MidCap 400, meaning they will offer very different coverage of the value and growth spaces due to a selection pool that is less than one-third the size it currently is and that excludes small-cap stocks.

After Jan. 23, IUSV and IUSG will track the S&P 900 Value Index and the S&P 900 Growth Index, respectively, setting aside the Russell 3000 Value and Russell 3000 Growth indexes. They will also change their names to the iShares Core S&P U.S. Value ETF and the iShares Core S&P U.S. Value ETF, respectively,  to reflect the new indexes.

No changes have been reported for the tickers or expense ratios. IUSV and IUSG both charge 0.07%. While the value fund has $965 million in assets under management, the growth fund has more than $1 billion.

Contact Heather Bell at [email protected].