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Should iShares Russell Mid-Cap ETF (IWR) Be on Your Investing Radar?
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Designed to provide broad exposure to the Mid Cap Blend segment of the US equity market, the iShares Russell Mid-Cap ETF (IWR - Free Report) is a passively managed exchange traded fund launched on 07/17/2001.
The fund is sponsored by Blackrock. It has amassed assets over $26.46 billion, making it one of the largest ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. Thus they have a nice balance of growth potential and stability.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.18%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.67%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 17.10% of the portfolio. Industrials and Financials round out the top three.
Looking at individual holdings, Oreilly Automotive Inc (ORLY - Free Report) accounts for about 0.56% of total assets, followed by Synopsys Inc (SNPS - Free Report) and Phillips 66 (PSX - Free Report) .
The top 10 holdings account for about 1.59% of total assets under management.
Performance and Risk
IWR seeks to match the performance of the Russell MidCap Index before fees and expenses. The Russell Midcap Index measures the performance of the mid-capitalization sector of the U.S. equity market.
The ETF has lost about -0.76% so far this year and is down about -12.56% in the last one year (as of 03/27/2023). In the past 52-week period, it has traded between $62.09 and $79.88.
The ETF has a beta of 1.09 and standard deviation of 23.48% for the trailing three-year period, making it a medium risk choice in the space. With about 822 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Mid-Cap ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWR is a great option for investors seeking exposure to the Style Box - Mid Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Mid-Cap ETF (VO - Free Report) and the iShares Core S&P Mid-Cap ETF (IJH - Free Report) track a similar index. While Vanguard Mid-Cap ETF has $49.77 billion in assets, iShares Core S&P Mid-Cap ETF has $63.65 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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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Should iShares Russell Mid-Cap ETF (IWR) Be on Your Investing Radar?
Designed to provide broad exposure to the Mid Cap Blend segment of the US equity market, the iShares Russell Mid-Cap ETF (IWR - Free Report) is a passively managed exchange traded fund launched on 07/17/2001.
The fund is sponsored by Blackrock. It has amassed assets over $26.46 billion, making it one of the largest ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. Thus they have a nice balance of growth potential and stability.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.18%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.67%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 17.10% of the portfolio. Industrials and Financials round out the top three.
Looking at individual holdings, Oreilly Automotive Inc (ORLY - Free Report) accounts for about 0.56% of total assets, followed by Synopsys Inc (SNPS - Free Report) and Phillips 66 (PSX - Free Report) .
The top 10 holdings account for about 1.59% of total assets under management.
Performance and Risk
IWR seeks to match the performance of the Russell MidCap Index before fees and expenses. The Russell Midcap Index measures the performance of the mid-capitalization sector of the U.S. equity market.
The ETF has lost about -0.76% so far this year and is down about -12.56% in the last one year (as of 03/27/2023). In the past 52-week period, it has traded between $62.09 and $79.88.
The ETF has a beta of 1.09 and standard deviation of 23.48% for the trailing three-year period, making it a medium risk choice in the space. With about 822 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Mid-Cap ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWR is a great option for investors seeking exposure to the Style Box - Mid Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Mid-Cap ETF (VO - Free Report) and the iShares Core S&P Mid-Cap ETF (IJH - Free Report) track a similar index. While Vanguard Mid-Cap ETF has $49.77 billion in assets, iShares Core S&P Mid-Cap ETF has $63.65 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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.