iShares Russell 1000 Value ETF (IWD): Complete Beginner's Guide
Last updated: March 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% |
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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%
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.
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.
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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.