iShares S&P Mid-Cap 400 Growth ETF (IJK)IJK

iShares S&P Mid-Cap 400 Growth ETF (IJK)

Profile:

The iShares S&P Mid-Cap 400 Growth ETF (IJK) tracks the performance of the S&P MidCap 400 Growth Index. This index comprises 400 mid-cap companies with strong growth potential, selected based on factors such as earnings growth, sales growth, and price momentum. IJK focuses on sectors like technology, healthcare, and consumer discretionary, aiming to provide capital appreciation for investors.

Objective:

The primary investment goal of IJK is to achieve long-term capital growth by investing in a portfolio of mid-cap growth stocks.

Issuer:

BlackRock:

• Reputation and Reliability: BlackRock is a leading global investment manager with a strong reputation and a long track record of success.
• Management: The ETF is managed by a team of experienced investment professionals with expertise in mid-cap growth stocks.

Market Share:

IJK is one of the largest mid-cap growth ETFs in the market, with over $33 billion in assets under management. It holds a significant market share in the mid-cap growth ETF space.

Total Net Assets:

As of November 1st, 2023, the total net assets of IJK are approximately $33.4 billion.

Moat:

• Scale and Diversification: IJK benefits from the scale and diversification of BlackRock, offering investors access to a broad universe of mid-cap growth stocks.
• Low Fees: The ETF has a relatively low expense ratio of 0.20%, making it an attractive option for cost-conscious investors.
• Strong Track Record: IJK has consistently outperformed its benchmark index over the long term.

Financial Performance:

IJK has historically delivered strong returns, outperforming the S&P 500 and its benchmark index over the past 5 and 10 years.

Growth Trajectory:

The mid-cap growth segment is expected to continue growing in the coming years, driven by factors such as technological innovation and increasing demand for consumer goods and services.

Liquidity:

IJK is a highly liquid ETF, with an average daily trading volume of over 5 million shares. The bid-ask spread is also relatively tight, making it easy to buy and sell shares.

Market Dynamics:

The performance of IJK is influenced by various factors, including the overall market environment, economic indicators, and growth prospects of the mid-cap sector.

Competitors:

• iShares Russell Midcap Growth ETF (IWP)
• Vanguard Mid-Cap Growth ETF (VOT)
• SPDR S&P MidCap 400 Growth ETF (MGK)

Expense Ratio:

IJK has an expense ratio of 0.20%.

Investment Approach and Strategy:

• Strategy: IJK passively tracks the S&P MidCap 400 Growth Index.
• Composition: The ETF holds a diversified portfolio of mid-cap growth stocks across various sectors.

Key Points:

• Broad exposure to mid-cap growth stocks.
• Strong historical performance.
• Low expense ratio.
• High liquidity.

Risks:

• Market Risk: IJK is subject to market risks, including fluctuations in stock prices.
• Growth Stock Risk: Growth stocks can be more volatile than other types of stocks.
• Sector Risk: The ETF is concentrated in certain sectors, which can be more volatile than the overall market.

Who Should Consider Investing:

IJK is suitable for investors looking for:

• Long-term capital growth: Investors seeking long-term capital appreciation through exposure to a portfolio of mid-cap growth stocks.
• Diversification: Investors looking to diversify their portfolios with exposure to mid-cap growth stocks.
• Passive Management: Investors who prefer a passively managed investment approach.

Fundamental Rating based on AI:

8.5/10

IJK scores highly due to its strong track record, low fees, and diversified portfolio. However, the ETF is exposed to market risks and sector-specific risks.

Resources and Disclaimers:

This analysis is based on publicly available information as of November 1st, 2023. Data and insights were sourced from BlackRock, ETFdb.com, and Morningstar.

Disclaimer:

This is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.