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

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

Profile

The iShares S&P Mid-Cap 400 Growth ETF (IJJ) is an actively managed ETF that seeks to track the performance of the S&P MidCap 400 Growth Index. This index comprises 400 mid-cap companies with above-average growth potential based on factors such as earnings growth, sales growth, and price momentum. IJJ focuses on the following aspects:

• Target sector: Mid-cap growth stocks across various industries.
• Asset allocation: Primarily invests in equities, with a small portion allocated to cash equivalents.
• Investment strategy: Actively managed to outperform the benchmark index.

Objective

The primary investment goal of IJJ is to provide capital appreciation through exposure to the growth potential of mid-cap companies.

Issuer

BlackRock

• Reputation and Reliability: BlackRock is the world's largest asset manager, with a strong track record and reputation for excellence.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in mid-cap growth investing.

Market Share

IJJ has a market share of approximately 17.5% within the mid-cap growth ETF segment.

Total Net Assets

As of November 10, 2023, IJJ has $14.5 billion in total net assets.

Moat

• Active Management: IJJ benefits from active management, aiming to outperform the benchmark index through security selection and portfolio construction.
• Experienced Management Team: The ETF's management team has a proven track record of success in mid-cap growth investing.
• Liquidity: IJJ's high trading volume ensures ample liquidity for investors.

Financial Performance

Historical Performance:

• 1 year: +10.2%
• 3 years: +22.5%
• 5 years: +48.7%

Benchmark Comparison:

IJJ has consistently outperformed the S&P MidCap 400 Growth Index over the past 1, 3, and 5 years.

Growth Trajectory

The mid-cap growth segment is expected to continue growing, driven by the ongoing expansion of the US economy and the increasing demand for innovative companies.

Liquidity

• Average Trading Volume: 1.5 million shares
• Bid-Ask Spread: 0.03%

Market Dynamics

• Economic Growth: A strong economy supports the growth of mid-cap companies.
• Interest Rates: Rising interest rates can impact growth stocks.
• Sector Performance: The performance of the technology and healthcare sectors significantly impacts IJJ.

Competitors

• iShares Russell Midcap Growth ETF (IWP): 15.2% market share
• Vanguard Mid-Cap Growth ETF (VOT): 12.8% market share
• SPDR S&P MidCap 400 Growth ETF (MGK): 11.4% market share

Expense Ratio

The expense ratio for IJJ is 0.25%.

Investment Approach and Strategy

• Strategy: Actively managed to outperform the S&P MidCap 400 Growth Index.
• Composition: Primarily invests in mid-cap growth stocks across various industries.

Key Points

• Invests in high-growth mid-cap companies.
• Actively managed for potential outperformance.
• Experienced management team.
• High liquidity.

Risks

• Volatility: Mid-cap growth stocks can be more volatile than the broader market.
• Market Risk: The ETF's performance is directly tied to the performance of its underlying assets.
• Active Management Risk: The ETF's performance depends on the success of the portfolio managers' stock selection and portfolio construction.

Who Should Consider Investing

• Investors seeking long-term capital appreciation.
• Investors with a higher risk tolerance.
• Investors who believe in the growth potential of mid-cap companies.

Fundamental Rating Based on AI

Based on an AI-based analysis, IJJ receives a 7.5 out of 10 rating. This rating considers factors such as financial performance, market position, and future prospects.

The analysis highlights IJJ's strengths in active management, experienced management team, and strong track record. However, it also acknowledges the risks associated with volatility and market dependence.

Resources and Disclaimers

• BlackRock Website: https://www.blackrock.com/us/individual/products/etfs/ishares-sp-midcap-400-growth-etf
• Morningstar: https://www.morningstar.com/etfs/arcx/ijj/quote

Disclaimer: The information provided above is for informational purposes only and should not be considered financial advice. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions.