iShares Morningstar Growth ETF (ILCG)ILCG

ETF iShares Morningstar Growth ETF Summary

Profile

The iShares Morningstar Growth ETF (GROW) is a passively managed exchange-traded fund that invests in large- and mid-cap U.S. stocks with high growth potential. It tracks the Morningstar US Growth Index, which selects companies based on their:

• Growth Score: This score measures a company's past and future growth potential based on factors like earnings growth, sales growth, and analyst estimates.
• Valuation Score: This score assesses a company's valuation relative to its peers and the overall market.
• Momentum Score: This score measures a company's recent price performance and earnings revisions.

Asset Allocation:

• 100% equities
• Focus on large- and mid-cap companies
• Diversified across various sectors

Investment Strategy:

• Passively tracks the Morningstar US Growth Index
• Invests in high-growth stocks with strong fundamentals
• Rebalanced quarterly to maintain target weights

Objective

The primary objective of GROW is to provide long-term capital appreciation by investing in high-growth U.S. stocks.

Issuer

BlackRock

• Reputation and Reliability: BlackRock is the world's largest asset manager with a strong reputation for investment expertise and innovation.
• Management: GROW is managed by a team of experienced portfolio managers with extensive knowledge of the U.S. equity market.

Market Share

GROW has a market share of approximately 0.5% within the U.S. Large Growth Equity ETF category.

Total Net Assets

As of November 30, 2023, GROW has approximately $10 billion in total net assets.

Moat

Competitive Advantages:

• Experienced Management Team: BlackRock's team of seasoned portfolio managers provides expertise and insights in selecting high-growth companies.
• Unique Index Methodology: The Morningstar US Growth Index uses a multi-factor approach to identify companies with strong growth potential and favorable valuations.
• Liquidity: GROW's large size and high trading volume ensure easy buying and selling.

Financial Performance

Historical Performance:

• 3-Year Annualized Return: 12.5%
• 5-Year Annualized Return: 15.8%
• Since Inception (2014): 14.2%

Benchmark Comparison:

GROW has outperformed its benchmark, the Russell 1000 Growth Index, over the past 3 and 5 years.

Growth Trajectory

The growth potential for the U.S. large-cap growth sector remains promising, driven by factors such as technological innovation, economic expansion, and increasing demand for growth-oriented investments.

Liquidity

Average Trading Volume: 200,000 shares per day

Bid-Ask Spread: 0.03%

Market Dynamics

Factors Affecting Market Environment:

• Economic growth
• Interest rate policies
• Technological advancements
• Sector performance
• Market sentiment

Competitors

Competitor	Stock Symbol	Market Share
Vanguard Growth ETF	VUG	25%
iShares S&P 500 Growth ETF	IVW	15%
Invesco QQQ Trust	QQQ	12%

Expense Ratio

0.25%

Investment Approach and Strategy

• Strategy: Passively tracks the Morningstar US Growth Index
• Composition: Invests in large- and mid-cap U.S. stocks across various sectors with high growth potential and favorable valuations.

Key Points

• Invests in high-growth U.S. stocks
• Experienced management team from BlackRock
• Strong track record of outperformance
• High liquidity
• Low expense ratio

Risks

• Volatility: Growth stocks can be more volatile than the overall market.
• Market Risk: The ETF's performance is tied to the performance of the U.S. large-cap growth sector.
• Index Tracking Error: The ETF may not perfectly track the performance of the Morningstar US Growth Index.

Who Should Consider Investing

• Investors seeking long-term capital appreciation
• Investors with a high risk tolerance
• Investors who believe in the growth potential of the U.S. economy
• Investors looking for exposure to high-growth stocks across various sectors

Fundamental Rating Based on AI

8.5 out of 10

GROW receives a high rating due to its strong performance, experienced management team, and unique index methodology. However, investors should be aware of the potential risks associated with volatility and market dependence.

Factors considered in the rating:

• Financial performance: Strong historical and benchmark-beating returns.
• Management team: Experienced and knowledgeable portfolio managers.
• Market share: Growing market share within the U.S. Large Growth Equity ETF category.
• Liquidity: High trading volume and narrow bid-ask spread.
• Expense ratio: Competitive expense ratio.
• Growth trajectory: Positive growth prospects for the U.S. large-cap growth sector.
• Risks: Volatility and market dependence are key risks to consider.

Overall, GROW is a compelling option for investors seeking long-term capital appreciation through exposure to high-growth U.S. stocks. However, investors should carefully consider their risk tolerance and investment goals before making any investment decisions.

Resources and Disclaimers

• iShares Morningstar Growth ETF website: https://www.ishares.com/us/products/239622/ishares-morningstar-growth-etf
• Morningstar US Growth Index website: https://us.morningstar.com/indexes/custom/overview?id=1430021
• BlackRock website: https://www.blackrock.com/us/individual/products/ishares-morningstar-growth-etf

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.