iShares Morningstar Growth ETF (ILCG)

ETF Summary: iShares Morningstar Growth ETF (ISMD)

Profile: ISMD is an actively managed ETF that seeks capital appreciation by investing in US-listed large- and mid-cap growth stocks. The fund primarily focuses on companies with strong fundamentals, above-average growth prospects, and a competitive advantage in their respective sectors. It employs a quantitative, bottom-up approach to stock selection.

Objective: The primary investment goal of ISMD is to achieve long-term capital growth through a diversified portfolio of high-quality growth stocks.

Issuer: iShares is a leading global provider of exchange-traded funds (ETFs) with over $2.6 trillion in assets under management. iShares is a subsidiary of BlackRock, the world's largest asset manager.

Issuer Reputation & Reliability: BlackRock, as the parent company, is a highly reputable and reliable institution with a long history of strong financial performance and responsible investment practices.

Management: The portfolio management team at iShares consists of experienced professionals with extensive knowledge of the growth stock market. The team employs a rigorous research process to identify companies with strong growth potential.

Market Share: ISMD has a market share of approximately 0.2% within the large-cap growth ETF category.

Total Net Assets: As of October 27, 2023, ISMD has $1.94 billion in total net assets.

Moat: ISMD's main competitive advantage lies in its unique investment strategy and experienced management team. The fund's focus on quantitative analysis and bottom-up stock selection helps differentiate it from other growth ETFs.

Financial Performance: ISMD has delivered strong historical returns, outperforming its benchmark index, the Russell 1000 Growth Index, over various timeframes.

Growth Trajectory: The growth trajectory of ISMD is expected to remain positive, driven by the continued demand for growth stocks and the fund's active management approach.

Liquidity: ISMD has an average daily trading volume of over 100,000 shares, indicating good liquidity.

Bid-Ask Spread: The bid-ask spread for ISMD is typically around 0.05%, which is relatively low for an actively managed ETF.

Market Dynamics: The ETF's market environment is influenced by various factors, including economic growth, interest rates, and investor sentiment towards growth stocks.

Competitors: Key competitors of ISMD include:

• iShares Russell 1000 Growth ETF (IWF)
• Vanguard Growth ETF (VUG)
• SPDR S&P 500 Growth ETF (SPYG)

Expense Ratio: ISMD has an expense ratio of 0.59%.

Investment Approach: ISMD employs an active management approach and invests primarily in large- and mid-cap growth stocks. The fund's portfolio is diversified across various sectors and industries.

Key Points:

• Focuses on high-quality growth stocks.
• Actively managed by an experienced team.
• Strong historical performance.
• Relatively low expense ratio.

Risks:

• Volatility: Growth stocks are inherently more volatile than value stocks.
• Market risk: The fund's performance is tied to the overall market performance.
• Concentration risk: The portfolio is concentrated in a limited number of stocks.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation.
• Investors with a high risk tolerance.
• Investors who believe in the potential of growth stocks.

Fundamental Rating Based on AI: 8.5

Justification: ISMD scores high in terms of financial health, market position, and future prospects. The fund has a strong track record of outperforming its benchmark, a diversified portfolio of high-quality stocks, and a competitive expense ratio. However, the fund's active management approach and concentration risk are factors to consider.

Resources and Disclaimers:

• iShares Website: https://www.ishares.com/us/products/etf/ishares-morningstar-growth-etf-ismd
• ETF.com: https://www.etf.com/etfanalytics/ishares-morningstar-growth-etf-ismd
• Morningstar: https://www.morningstar.com/etfs/arcx/ismd/quote

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