iShares Russell 1000 Value ETF (IWD): Complete Beginner's Guide
iShares Russell 1000 Value ETF (IWD) is a us large-cap value ETF from BlackRock with an expense ratio of 0.19% and $55.0B in assets under management. Our Beginner Suitability Score: 9.5/10 (Great for Beginners). 5-year annualized return: 9.50%.
Last updated: April 2026
BlackRock • US Large-Cap Value
Expense Ratio
0.19%
AUM
$55.0B
Dividend Yield
2.20%
Inception
2000
Beginner Score
9.5/10
What is iShares Russell 1000 Value ETF?
IWD tracks the Russell 1000 Value Index, which selects stocks from the largest 1,000 U.S. companies based on lower price-to-book ratios and lower expected growth rates. It provides broad value exposure with more holdings than S&P 500 value funds. The fund is widely used by institutional investors and financial advisors as a core value allocation in diversified portfolios.
IWD is managed by BlackRock and has been available since 2000. With $55.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.19%, which means for every $10,000 you invest, you pay approximately $19 per year in management fees.
IWD at a Glance — Key Metrics
| Expense Ratio | 0.19% |
| Total Holdings | 850 |
| P/E Ratio | 17.5 |
| Beta | 0.90 |
| Dividend Yield | 2.20% |
| AUM | $55.0B |
| Inception Year | 2000 |
| Issuer | BlackRock |
Top 10 Holdings in IWD
IWD holds 850 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Berkshire Hathaway | BRK.B | 3.50% |
| 2 | JPMorgan Chase | JPM | 2.80% |
| 3 | ExxonMobil | XOM | 2.50% |
| 4 | UnitedHealth Group | UNH | 2.20% |
| 5 | Johnson & Johnson | JNJ | 2.00% |
| 6 | Procter & Gamble | PG | 1.80% |
| 7 | Bank of America | BAC | 1.60% |
| 8 | Chevron | CVX | 1.50% |
| 9 | AbbVie | ABBV | 1.40% |
| 10 | Wells Fargo | WFC | 1.30% |
IWD's top holding is Berkshire Hathaway (BRK.B) at 3.50%, followed by JPMorgan Chase (JPM) at 2.80% and ExxonMobil (XOM) at 2.50%. The top 10 holdings account for 20.60% of the fund's 850 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Berkshire Hathaway | BRK.B | 3.50% |
| 2 | JPMorgan Chase | JPM | 2.80% |
| 3 | ExxonMobil | XOM | 2.50% |
| 4 | UnitedHealth Group | UNH | 2.20% |
| 5 | Johnson & Johnson | JNJ | 2.00% |
| 6 | Procter & Gamble | PG | 1.80% |
| 7 | Bank of America | BAC | 1.60% |
| 8 | Chevron | CVX | 1.50% |
| 9 | AbbVie | ABBV | 1.40% |
| 10 | Wells Fargo | WFC | 1.30% |
Want the full framework? This 2-hour ETF course teaches you exactly how to pick, buy, and hold profitable ETFs — from zero to confident investor. Under $15.
Ready to invest? Open an IBKR account in 10 minutes and get free stock. $0 commissions on US ETFs • Fractional shares from $1 • 150+ global markets.
IWD Performance History
Here's how IWD has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
2.80%
1 Year
11.00%
3 Year
8.50%
5 Year
9.50%
10 Year
9.00%
IWD has returned 9.50% annualized over 5 years and 9.00% over 10 years. YTD return is 2.80%.
View data table
| Period | Return |
|---|---|
| YTD | 2.80% |
| 1 Year | 11.00% |
| 3 Year | 8.50% |
| 5 Year | 9.50% |
| 10 Year | 9.00% |
Beginner Suitability Score: 9.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
IWD scores 9.5/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 850 holdings, and has been available since 2000, giving it a proven track record.
How to Buy IWD — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "IWD" — Use the search bar in your brokerage platform to find iShares Russell 1000 Value ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
IWD Sector Allocation
Here's how IWD distributes its investments across different sectors of the economy:
IWD's largest sector allocation is Financials at 22.0%, followed by Healthcare at 16.0% and Industrials at 13.0%.
View data table
| Sector | Weight |
|---|---|
| Financials | 22.0% |
| Healthcare | 16.0% |
| Industrials | 13.0% |
| Energy | 9.0% |
| Consumer Staples | 9.0% |
| Technology | 8.0% |
| Utilities | 7.0% |
| Consumer Discretionary | 6.0% |
| Real Estate | 5.0% |
| Communication Services | 3.0% |
| Materials | 2.0% |
Dollar Cost Averaging Into IWD
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With IWD's expense ratio of 0.19%, a $10,000 investment would lose approximately $1,613 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.
IWD's expense ratio of 0.19% costs $1,613 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $44,997.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,564 | $129 |
| 10 | $21,589 | $21,212 | $377 |
| 15 | $31,722 | $30,895 | $827 |
| 20 | $46,610 | $44,997 | $1,613 |
Pros and Cons of IWD
Pros
- ✓Very broad value exposure with over 850 holdings for deep diversification
- ✓Russell methodology captures a wider value universe than S&P-based alternatives
- ✓Strong institutional adoption makes it highly liquid with active options markets
- ✓Moderate dividend yield provides some income alongside capital appreciation
Cons
- ✗Expense ratio of 0.19% is significantly higher than Vanguard Value ETF (VTV)
- ✗Heavy financial sector weight increases exposure to banking and interest rate risk
- ✗Value stocks can lag growth stocks for extended multi-year periods
IWD vs Similar ETFs
See how IWD stacks up against similar funds:
Frequently Asked Questions
Is IWD a good ETF for beginners?▾
IWD has a Beginner Suitability Score of 9.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of IWD?▾
IWD has an expense ratio of 0.19%. This means for every $10,000 you invest, you pay approximately $19 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in IWD?▾
You can invest in IWD with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does IWD pay dividends?▾
Yes, IWD pays dividends with a current yield of approximately 2.20%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in IWD?▾
The top holdings in IWD include Berkshire Hathaway (3.50%), JPMorgan Chase (2.80%), ExxonMobil (2.50%), and more. The fund holds 850 total positions, providing broad diversification across many companies.
What sectors does IWD invest in?▾
IWD's largest sector allocations are Financials (22.00%), Healthcare (16.00%), Industrials (13.00%). This sector distribution shows a focus on financials stocks.
How much do IWD's fees cost over time?▾
With an expense ratio of 0.19%, a $10,000 investment in IWD would lose approximately $1,613 to fees over 20 years (assuming 8% annual returns). Consider whether the fund's strategy justifies these costs.