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Is iShares Core S&P U.S. Growth ETF (IUSG) a Strong ETF Right Now?
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A smart beta exchange traded fund, the iShares Core S&P U.S. Growth ETF (IUSG - Free Report) debuted on 07/24/2000, and offers broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by Blackrock, and has been able to amass over $11.84 billion, which makes it one of the largest ETFs in the Style Box - All Cap Growth. IUSG seeks to match the performance of the S&P 900 Growth Index before fees and expenses.
The S&P 900 Growth Index measures the performance of the large and mid-capitalization growth sector of the U.S. equity market.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.04%.
IUSG's 12-month trailing dividend yield is 0.68%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
IUSG's heaviest allocation is in the Information Technology sector, which is about 42.40% of the portfolio. Its Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT - Free Report) accounts for about 10.95% of total assets, followed by Apple Inc (AAPL - Free Report) and Amazon Com Inc (AMZN - Free Report) .
Its top 10 holdings account for approximately 27.68% of IUSG's total assets under management.
Performance and Risk
Year-to-date, the iShares Core S&P U.S. Growth ETF has lost about -14.62% so far, and is up about 9.96% over the last 12 months (as of 02/25/2022). IUSG has traded between $85.70 and $117.16 in this past 52-week period.
The ETF has a beta of 1.02 and standard deviation of 23.67% for the trailing three-year period, making it a medium risk choice in the space. With about 478 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P U.S. Growth ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
First Trust US Equity Opportunities ETF (FPX - Free Report) tracks IPOX-100 U.S. Index and the iShares Morningstar Growth ETF (ILCG - Free Report) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID. First Trust US Equity Opportunities ETF has $1.44 billion in assets, iShares Morningstar Growth ETF has $1.90 billion. FPX has an expense ratio of 0.57% and ILCG charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is iShares Core S&P U.S. Growth ETF (IUSG) a Strong ETF Right Now?
A smart beta exchange traded fund, the iShares Core S&P U.S. Growth ETF (IUSG - Free Report) debuted on 07/24/2000, and offers broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by Blackrock, and has been able to amass over $11.84 billion, which makes it one of the largest ETFs in the Style Box - All Cap Growth. IUSG seeks to match the performance of the S&P 900 Growth Index before fees and expenses.
The S&P 900 Growth Index measures the performance of the large and mid-capitalization growth sector of the U.S. equity market.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.04%.
IUSG's 12-month trailing dividend yield is 0.68%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
IUSG's heaviest allocation is in the Information Technology sector, which is about 42.40% of the portfolio. Its Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT - Free Report) accounts for about 10.95% of total assets, followed by Apple Inc (AAPL - Free Report) and Amazon Com Inc (AMZN - Free Report) .
Its top 10 holdings account for approximately 27.68% of IUSG's total assets under management.
Performance and Risk
Year-to-date, the iShares Core S&P U.S. Growth ETF has lost about -14.62% so far, and is up about 9.96% over the last 12 months (as of 02/25/2022). IUSG has traded between $85.70 and $117.16 in this past 52-week period.
The ETF has a beta of 1.02 and standard deviation of 23.67% for the trailing three-year period, making it a medium risk choice in the space. With about 478 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P U.S. Growth ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
First Trust US Equity Opportunities ETF (FPX - Free Report) tracks IPOX-100 U.S. Index and the iShares Morningstar Growth ETF (ILCG - Free Report) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID. First Trust US Equity Opportunities ETF has $1.44 billion in assets, iShares Morningstar Growth ETF has $1.90 billion. FPX has an expense ratio of 0.57% and ILCG charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.