What IWD actually is

IWD follows the Russell 1000 Value Index, which selects the more inexpensive half of the largest 1,000 US companies, based on measures like price-to-book ratio and growth forecasts.

What is inside

Large banks, health care and insurance companies, industrials and energy firms, with less technology than a growth fund. Many of these companies are mature and pay regular dividends.

Distributions

It pays quarterly. The yield is usually higher than the overall market’s, but not as high as a dedicated income fund. Payments move with the dividends of its holdings.

What to keep in mind

  • Value traps. Some cheap stocks are cheap for good reasons.
  • Style cycles. Value and growth take turns leading.
  • Overlap. Many holdings also appear in broad funds.

Quick take

IWD is a classic value fund for investors who want an income tilt without a strict dividend screen. Compare it with IWF for the growth side.