VLUE “seeks to track the performance of an index that measures the performance of U.S. large- and mid-capitalization stocks with value characteristics and relatively lower valuations, before fees and expenses,” according to iShares.

VLUE is four years old and holds 150 stocks. The ETF’s largest sector is 23.2% to technology followed by 14.1% to financial services. Healthcare and consumer discretionary names combine for a quarter of VLUE’s lineup.

“From an economic perspective, many value firms are in traditional businesses such as manufacturing, industrial production and financial services,” said BlackRock. “These companies can’t easily change practices because they have specific business models, high levels of specialized equipment, or production processes that are not easily convertible for other purposes. While they have tended to lag in slow economic periods, they may capture the uplift more efficiently during times of booming economic growth.”

Value stocks have historically outperformed growth stocks, or companies with high earnings expectations, in almost every market over the long-haul. For instance, the MSCI USA Value Index has outperformed the MSCI USA Growth Index by an annualized 81 basis points since 1974 through September 2015.

For more on smart beta strategies, visit our smart beta channel.