Subject: Re: Compare Performance of three styles
VLUE is not a traditional value fund. VLUE follows the MSCI USA Enhanced Value Index that uses a complicated weighting scheme. VLUE has 23% of assets in MU. On top of that, VLUE does not replicate the index, but instead buys selectively. For example, VLUE does not own any Intel. All of this makes VLUE interesting, but not a typical value fund.

MSCI USA Enhanced Value Index
Top 10 constituents as of May 29, 2026

18.36%  MICRON TECHNOLOGY
9.48%   INTEL CORP
5.94%   CISCO SYSTEMS
3.51%   APPLIED MATERIALS
2.87%   GENERAL MOTORS
2.22%   VERIZON COMMUNICATIONS
2.12%   QUALCOMM
2.01%   AT&T
1.93%   WESTERN DIGITAL
1.81%   FORD MOTOR CO

data from https://www.msci.com/indexes/i...

iShares MSCI USA Value Factor ETF VLUE
Top 10 Holdings as of June 1, 2026

  MU   23.02
CSCO   4.82
  GM   3.44
  VZ   2.85
  T    2.53
  F    2.20
QCOM   2.17
 BAC   1.76
CMCSA  1.73
 HPE   1.72

data from https://www.ishares.com/us/pro...

Other value funds (VTV, DODGX, DFLVX) hold less MU:

Fund   AUM[$B]  Holdings  Turnover  MU_weight
 VTV     238      325        8%       2.26%
DODGX    120       89       20%       0.00%
DFLVX    26       316        8%       2.54%
VLUE     15       155       30%       22.59%

Maybe VLUE is trying to amp its returns to get more AUM. Factor loadings from 2013 to May 2026 (HML) are similar for these "value" mutual funds and ETFs, but VLUE did better recently:

1yR  10yrCAGR  Ticker  Rm-Rf   SMB   HML    MOM   Alpha   Annual Alpha  R2   Name
27     12.4      VTV   0.87   -0.10  0.39  0.02   -0.02%     -0.21%     94%  Vanguard Value ETF
13     12.7    DODGX   0.96   -0.03  0.42  -0.12  0.00%       0.00%     94%  Dodge&Cox Stock I
27     11.8    DFLVX   0.97   0.01   0.48  -0.05  -0.12%     -1.40%     95%  DFA US Large Cap Value I
95     15.4     VLUE   0.97   0.03   0.43  -0.09  -0.05%     -0.66%     91%  iShares MSCI USA Value Factor ETF

Much of VLUE's recent outperformance is from the MU overweighting. MU is up 1000% in the last year, and so any ETF overweight MU did well. Congratulations to VLUE for getting this home run, let's see if they can get the next one.