iShares Morningstar Growth ETF (ILCG)

iShares Morningstar Growth ETF (GROW) Summary

Profile:

The iShares Morningstar Growth ETF (GROW) is a passively managed exchange-traded fund that seeks to track the Morningstar US Large Mid Growth Index. This index includes large- and mid-cap U.S. stocks with high growth potential, as determined by Morningstar's proprietary research. The ETF invests in a diversified portfolio of around 375 stocks across various sectors, with a focus on technology, healthcare, and consumer discretionary industries.

Objective:

GROW's primary objective is to provide long-term capital appreciation for investors by investing in companies with strong growth potential. The ETF aims to achieve this by tracking the Morningstar US Large Mid Growth Index and offering exposure to a diversified portfolio of high-growth stocks.

Issuer:

GROW is issued by iShares, a leading global provider of exchange-traded funds (ETFs) with over $2.8 trillion in assets under management. iShares is part of BlackRock, the world's largest asset manager.

Reputation and Reliability:

iShares has a strong reputation as a reliable and experienced issuer of ETFs. The company is known for its robust investment process, rigorous risk management, and commitment to transparency. BlackRock, iShares' parent company, is also a highly respected and well-established financial institution.

Management:

GROW is managed by a team of experienced portfolio managers from iShares and BlackRock. The team has extensive experience in managing growth-oriented investment portfolios and a strong track record of success.

Market Share:

GROW has a significant market share within the growth ETF space, with approximately $19.5 billion in assets under management. This makes it one of the largest and most actively traded growth ETFs available.

Total Net Assets:

As of November 7, 2023, GROW has approximately $19.5 billion in total net assets.

Moat:

GROW's competitive advantages include its:

• Access to Morningstar's proprietary research: Morningstar is a leading provider of independent investment research, and GROW benefits from this expertise.
• Diversified portfolio: GROW's investment in a wide range of growth stocks helps to mitigate risks and improve overall portfolio performance.
• Low expense ratio: GROW has an expense ratio of 0.20%, which is relatively low compared to other growth ETFs.

Financial Performance:

GROW has historically outperformed its benchmark index, the Morningstar US Large Mid Growth Index. Over the past three years, GROW has delivered an annualized return of 14.8%, compared to 12.5% for the index.

Growth Trajectory:

The U.S. growth stock market is expected to continue expanding in the long term, driven by factors such as technological innovation, globalization, and rising consumer spending. This provides a positive outlook for GROW's future growth potential.

Liquidity:

GROW is a highly liquid ETF with an average daily trading volume of over 1 million shares. This ensures that investors can easily buy and sell shares of the ETF without significant price impact.

Bid-Ask Spread:

The bid-ask spread for GROW is typically around 0.01%, which is considered tight and indicates efficient trading of the ETF.

Market Dynamics:

The growth stock market is sensitive to various economic and market factors, including interest rate changes, inflation, and economic growth. Investors should be aware of these risks when considering an investment in GROW.

Competitors:

Key competitors of GROW include:

• iShares Russell 1000 Growth ETF (IWF)
• Vanguard Growth ETF (VUG)
• Invesco QQQ Trust (QQQ)

Expense Ratio:

GROW has an expense ratio of 0.20%.

Investment Approach and Strategy:

GROW is a passively managed ETF that tracks the Morningstar US Large Mid Growth Index. The ETF invests in the same proportions as the index, holding a diversified portfolio of large- and mid-cap growth stocks across various sectors.

Key Points:

• Invests in high-growth stocks with strong potential for long-term capital appreciation.
• Diversified portfolio across various sectors, including technology, healthcare, and consumer discretionary.
• Tracks the Morningstar US Large Mid Growth Index.
• Low expense ratio of 0.20%.
• Highly liquid with an average daily trading volume of over 1 million shares.

Risks:

• Growth stocks are typically more volatile than value stocks.
• The ETF is subject to market risks, such as interest rate changes, inflation, and economic growth.
• The ETF's performance is dependent on the performance of the underlying index.

Who Should Consider Investing:

GROW is suitable for investors with a long-term investment horizon