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Should iShares Russell Mid-Cap Growth ETF (IWP) Be on Your Investing Radar?
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Looking for broad exposure to the Mid Cap Growth segment of the US equity market? You should consider the iShares Russell Mid-Cap Growth ETF (IWP - Free Report) , a passively managed exchange traded fund launched on 07/17/2001.
The fund is sponsored by Blackrock. It has amassed assets over $11.51 billion, making it the largest ETFs attempting to match the Mid Cap Growth segment of the US equity market.
Why Mid Cap Growth
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.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.23%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.75%.
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 23.40% of the portfolio. Industrials and Healthcare round out the top three.
Looking at individual holdings, Apollo Global Management Inc (APO - Free Report) accounts for about 1.67% of total assets, followed by Cheniere Energy Inc (LNG - Free Report) and Copart Inc (CPRT - Free Report) .
The top 10 holdings account for about 13.99% of total assets under management.
Performance and Risk
IWP seeks to match the performance of the Russell MidCap Growth Index before fees and expenses. The Russell Midcap Growth Index measures the performance of the mid-capitalization growth sector of the U.S. equity market. It is a subset of the Russell Midcap Index, which measures the performance of the mid-capitalization sector of the U.S. equity market & approximately 47% of the total market value of the Russell Midcap Index.
The ETF return is roughly 2.95% so far this year and is up about 3.49% in the last one year (as of 10/30/2023). In the past 52-week period, it has traded between $81.31 and $100.32.
The ETF has a beta of 1.09 and standard deviation of 24.01% for the trailing three-year period, making it a medium risk choice in the space. With about 339 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Mid-Cap Growth 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, IWP is an excellent option for investors seeking exposure to the Style Box - Mid Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares S&P Mid-Cap 400 Growth ETF (IJK - Free Report) and the Vanguard Mid-Cap Growth ETF (VOT - Free Report) track a similar index. While iShares S&P Mid-Cap 400 Growth ETF has $6.91 billion in assets, Vanguard Mid-Cap Growth ETF has $9.71 billion. IJK has an expense ratio of 0.17% and VOT charges 0.07%.
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 Growth ETF (IWP) Be on Your Investing Radar?
Looking for broad exposure to the Mid Cap Growth segment of the US equity market? You should consider the iShares Russell Mid-Cap Growth ETF (IWP - Free Report) , a passively managed exchange traded fund launched on 07/17/2001.
The fund is sponsored by Blackrock. It has amassed assets over $11.51 billion, making it the largest ETFs attempting to match the Mid Cap Growth segment of the US equity market.
Why Mid Cap Growth
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.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.23%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.75%.
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 23.40% of the portfolio. Industrials and Healthcare round out the top three.
Looking at individual holdings, Apollo Global Management Inc (APO - Free Report) accounts for about 1.67% of total assets, followed by Cheniere Energy Inc (LNG - Free Report) and Copart Inc (CPRT - Free Report) .
The top 10 holdings account for about 13.99% of total assets under management.
Performance and Risk
IWP seeks to match the performance of the Russell MidCap Growth Index before fees and expenses. The Russell Midcap Growth Index measures the performance of the mid-capitalization growth sector of the U.S. equity market. It is a subset of the Russell Midcap Index, which measures the performance of the mid-capitalization sector of the U.S. equity market & approximately 47% of the total market value of the Russell Midcap Index.
The ETF return is roughly 2.95% so far this year and is up about 3.49% in the last one year (as of 10/30/2023). In the past 52-week period, it has traded between $81.31 and $100.32.
The ETF has a beta of 1.09 and standard deviation of 24.01% for the trailing three-year period, making it a medium risk choice in the space. With about 339 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Mid-Cap Growth 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, IWP is an excellent option for investors seeking exposure to the Style Box - Mid Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares S&P Mid-Cap 400 Growth ETF (IJK - Free Report) and the Vanguard Mid-Cap Growth ETF (VOT - Free Report) track a similar index. While iShares S&P Mid-Cap 400 Growth ETF has $6.91 billion in assets, Vanguard Mid-Cap Growth ETF has $9.71 billion. IJK has an expense ratio of 0.17% and VOT charges 0.07%.
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.