Numbers

The Numbers

IMCV is a passively managed mid-cap value ETF that delivers 274 names of broad-market mid-cap value exposure for 6 basis points — among the cheapest passive vehicles in its category. The fund tracks its benchmark within ~5–25 bps annually, has compounded NAV at 10.07% over 10 years (versus the index at 10.23%), and AUM has jumped from $643M at fiscal year-end (April 2025) to $975M by March 2026 — a 51% rise driven mostly by net inflows, not price. The single number to watch is the bid/offer between IMCV (6 bps) and Vanguard's VOE (7 bps): both deliver the factor cleanly, and the mid-cap-value flow story rides on whichever vehicle wins the next round of fee competition.

Snapshot

The ETF holds 274 mid-cap U.S. equities weighted by Morningstar's value-screening methodology (forward earnings, book value, sales, cash flow, dividend yield). It launched in 2004 (originally as JKI), reorganized to a broader index on March 22, 2021, and simultaneously cut its expense ratio from 0.27% to 0.06%. Morningstar awards it a Bronze medal with a 3-star overall rating against 388 mid-cap value funds.

What you own — sector and concentration

The portfolio is value-tilted toward Financials, Energy, Industrials, and Utilities (52% of NAV combined) — sectors with mature cash flows and dividend support. Only 6% sits in Information Technology, the largest single sector deviation from the broader U.S. market. The top-10 holdings represent just 11.9% of assets, so single-name risk is minimal.

The largest names are dividend-paying mid-caps in financials (PNC, US Bancorp), midstream energy (Williams, EOG, Schlumberger), and industrials (FedEx, CSX, ITW) — the canonical mid-cap value cohort.

AUM trajectory — the inflow story

AUM grew steadily from $458M to $643M over the four fiscal years post-reorganization (~9% CAGR), then jumped 52% to $975M in just 11 months (April 2025 → March 2026). Of that $332M increase, roughly $120M is price/NAV appreciation and the remaining $212M is net subscriber inflow — shares outstanding climbed from ~9.0M to 11.5M, a 28% rise. This is real demand for the mid-cap-value factor, not just a market-up effect.

Tracking quality — does it do the job?

Tracking is excellent: in five calendar years, NAV has matched the Morningstar US Mid Cap Broad Value Index within 3 to 15 basis points annually. CY2021's 15-bps gap is the widest of the period — and it captures the partial-year impact of the index switch in March 2021. Since the rebrand, the gap is consistently below 10 bps.

Annualized tracking error widens at longer horizons (16 bps over 10y, 23 bps since inception in 2004) — but this predates the 2021 fee cut. With the current 6-bp ratio, future tracking should remain within 5–10 bps annually. For a passive index ETF, that is the relevant quality test, and IMCV passes it.

The expense-ratio reset

In one stroke on March 22, 2021, BlackRock cut the fee from 0.27% to 0.06% — a 78% reduction — and rebenchmarked the fund from a narrower mid-value index to the broader Morningstar US Mid Cap Broad Value Index. That move is what made IMCV competitive with Vanguard and SPDR alternatives. Portfolio turnover also dropped — from 95% in FY2021 to 31% in FY2025 — reducing internal trading costs further.

Distributions and yield

Distributions per share have grown 9.5% CAGR over 4 years, reflecting both rising dividends from the underlying mid-cap value names and a small contribution from realized capital gains. The trailing-twelve-month yield is 2.06% and the 30-day SEC yield is 2.23% — solid for a U.S. equity ETF, well above the broader market's ~1.4% trailing yield.

Price evolution since the 2021 reorganization

Since the rebrand, IMCV has compounded at 38% over 5 years (price-only, 6.7% CAGR) plus distributions. The current price of $88.37 is 94% of the 52-week high ($89.61) — momentum is firmly bullish. RSI(14) sits at 62 and 30-day realized volatility is 11.4%, below the 50th-percentile band of 13.6% for this ETF.

Portfolio characteristics — what the underlying basket looks like

The basket trades at 18.1x earnings and 2.3x book — discounts of ~25% on P/E and ~40% on P/B vs the S&P 500 (currently trading at ~24x earnings, ~4.0x book). The 3-year beta of 0.94 confirms the value tilt: somewhat less volatile than the broad market. This is the cleanest read on whether you're getting a real value factor — and yes, you are, but the discount is moderate, not deep.

Peer comparison — the 4-way mid-cap value choice

Valuation — the "is it cheap?" question for an ETF

IMCV's basket is meaningfully cheaper than the S&P 500 but somewhat more expensive than small-cap value. That positioning matches what investors expect from "mid-cap value" — a middle ground between expensive large-cap quality and deeper-value small-caps with higher distress risk. The 2.06% yield is also middle-ground: better than the broad market, lighter than small-cap value or income-focused vehicles.

Risk read — what could break the thesis

The biggest near-term risk is mean-reversion in the value rotation. CY2022 (rates ripping higher, growth stocks rerating) was IMCV's only down year of the past five — and the drawdown was a manageable 6.6%. The 14.5% standard deviation is consistent with broad U.S. equity, not elevated.

What to expect — base / bear / bull

Because IMCV is a passive index vehicle, the entire return distribution is controlled by the underlying basket of mid-cap value names, not by management decisions. The single lever the issuer controls — fees — is already at floor levels (6 bps).

What to take away

The numbers confirm that IMCV does what it says on the tin: it tracks a broad mid-cap value index within a few basis points annually, charges among the lowest fees in its category, and has compounded NAV at ~10% over a decade — squarely in line with the benchmark.

The numbers contradict the popular framing that "deep value" is on offer here — at 18.1x earnings and 2.3x book, the basket is moderately discounted to the S&P 500, not cheap in absolute terms. Investors expecting a Russell 2000 Value-style discount are in the wrong vehicle.

What to watch next: AUM through the April 2026 fiscal year-end. The 51% rise from $643M to $975M in 11 months says the value rotation is real and bringing flows. If AUM holds above $1B by FY2026 close, the relative-value case for IMCV strengthens. If it slips back below $750M, the gravitational pull toward larger, similarly-priced peers (VOE at $17.5B AUM) intensifies — and the structural advantage of greater liquidity makes those vehicles harder to leave.