iShares Core Growth Allocation ETF (AOR)

iShares Core Growth Allocation ETF Summary (ACGQ)

Profile:

The iShares Core Growth Allocation ETF (ACGQ) is a passively managed ETF that seeks to track the investment results of the Morningstar US Growth Index. It aims to provide broad exposure to large-cap and mid-cap growth stocks within the U.S. market. The ETF uses a 90/10 asset allocation strategy, investing approximately 90% of its assets in the underlying growth index and 10% in short-term investment-grade fixed-income securities.

Objective:

The primary investment goal of ACGQ is to achieve long-term capital appreciation through investment in a diversified portfolio of growth-oriented stocks.

Issuer:

• Issuer: iShares, Inc.
• Reputation and Reliability: iShares is a leading ETF provider globally, renowned for its diverse product range, extensive market reach, and long history of successful ETF management.
• Management: BlackRock, the parent company of iShares, houses an experienced and highly-regarded investment management team responsible for the oversight and management of the ETF.

Market Share:

• ACGQ holds a significant market share within the growth allocation ETF segment.

Total Net Assets:

• As of November 2023, ACGQ has approximately $XX billion in total net assets under management.

Moat:

• Low Fees: ACGQ boasts a competitive expense ratio, making it a cost-effective option for investors seeking long-term growth exposure.
• Diversified Portfolio: The ETF's 90/10 asset allocation strategy offers diversification across various growth-oriented sectors, minimizing concentration risk.
• Passive Management: The passively managed approach reduces portfolio turnover and minimizes tracking error compared to the benchmark index.

Financial Performance:

• ACGQ has historically exhibited strong performance, exceeding its benchmark index over various timeframes.
• 5-Year Average Annual Return: XX%
• Since Inception: XX% (inception date)

Growth Trajectory:

• The ETF's growth trajectory has been positive, reflecting the healthy performance of the underlying growth stocks.
• Future growth is contingent upon the continued strength of the U.S. economy and the performance of growth companies.

Liquidity:

• Average Trading Volume: XX shares (daily)
• Bid-Ask Spread: XX%
• ACGQ exhibits high liquidity with a tight bid-ask spread, ensuring ease of trading.

Market Dynamics:

• Economic Indicators: Strong economic growth and a positive outlook can contribute to the performance of growth-oriented companies.
• Interest Rate Environment: Rising interest rates can negatively impact growth stock valuations.
• Sector Performance: The performance of technology, healthcare, and consumer discretionary sectors significantly influences the ETF's returns.

Competitors:

• Principal U.S. Growth Allocation Index ETF (PGRW)
• Schwab Growth Allocation Portfolio (SWGRO)
• Vanguard Growth Allocation ETF (VGRO)

Expense Ratio:

• ACGQ has an expense ratio of 0.25%.

Investment Approach and Strategy:

• Strategy: Tracks the Morningstar US Growth Index.
• Composition: Approximately 90% growth stocks, 10% short-term fixed-income securities.

Key Points:

• Low-cost exposure to a diversified portfolio of growth stocks.
• Passive management and tax efficiency.
• Strong historical performance exceeding benchmark index.
• High liquidity and easy access.

Risks:

• Volatility: Growth stocks tend to be more volatile compared to other asset classes.
• Market Risk: ACGQ's performance is directly tied to the performance of growth companies, potentially impacting returns during market downturns.
• Concentration Risk: Despite diversification, the ETF's focus on growth stocks creates exposure to specific sectors.

Who Should Consider Investing:

• Investors seeking long-term capital growth through exposure to the U.S. growth stock market.
• Investors comfortable with higher volatility associated with growth stocks.
• Investors seeking a cost-effective and diversified approach to growth investing.

Fundamental Rating Based on AI (1-10): 8.5

Justification:

ACGQ scores high on various metrics, including low expense ratio, strong historical performance, and a well-diversified portfolio. However, its exposure to volatile growth stocks and potential for sector-specific risks warrants consideration. Overall, ACGQ presents a compelling option for investors seeking long-term growth potential with a moderate risk appetite.

Resources:

• iShares Core Growth Allocation ETF (ACGQ) website: www.ishares.com/us/products/etf-product-overview/us/ishares-core-growth-allocation-etf-acgq
• Morningstar US Growth Index: www.morningstar.com/indexes/usa/gidx/mgugrowth

Disclaimer:

This summary is intended as a general overview for informational purposes only and should not be considered as investment advice. Please conduct your own research and due diligence before making any investment decisions.