iShares Russell 2000 Growth ETF (IWO)IWO

ETF iShares Russell 2000 Growth ETF (IWO)

Profile:

The iShares Russell 2000 Growth ETF (IWO) seeks to track the investment results of the Russell 2000® Growth Index. This index measures the performance of the small-cap segment of the U.S. equity market, focusing on companies with above-average growth potential. IWO primarily invests in stocks of companies in the Russell 2000® Growth Index, with a market capitalization typically ranging from $750 million to $5 billion.

Objective:

IWO aims to provide investors with long-term capital appreciation by investing in a portfolio of small-cap growth stocks. The fund seeks to achieve its objective by tracking the Russell 2000® Growth Index as closely as possible.

Issuer:

BlackRock

• Reputation and Reliability: BlackRock is the world's largest asset manager, with a global reputation for expertise and reliability.
• Management: The iShares Russell 2000 Growth ETF is managed by a team of experienced portfolio managers who have a deep understanding of the small-cap growth market.

Market Share:

IWO is the largest ETF in the small-cap growth category, with a market share of approximately 58%.

Total Net Assets:

As of October 31, 2023, IWO has approximately $66.58 billion in total net assets.

Moat:

IWO's competitive advantages include:

• Low Expense Ratio: 0.24%
• Liquidity: IWO is one of the most liquid ETFs in the small-cap growth category.
• Track Record: IWO has a strong track record of outperforming its benchmark index.

Financial Performance:

• 1-Year Return: 10.23%
• 3-Year Return: 15.21%
• 5-Year Return: 18.24%

Benchmark Comparison:

IWO has outperformed the Russell 2000® Growth Index over the past 1, 3, and 5 years.

Growth Trajectory:

The U.S. small-cap growth market is expected to continue to grow in the coming years, driven by factors such as technological innovation and economic expansion.

Liquidity:

• Average Trading Volume: 12.5 million shares per day
• Bid-Ask Spread: 0.02%

Market Dynamics:

Several factors can affect the performance of IWO, including:

• Economic Growth: A strong economy can lead to increased earnings for small-cap growth companies.
• Interest Rates: Rising interest rates can make it more expensive for companies to borrow money, which could hurt their growth prospects.
• Sector Performance: The performance of the technology and healthcare sectors can significantly impact IWO, as these sectors are heavily represented in the Russell 2000® Growth Index.

Competitors:

• iShares S&P SmallCap 600 Growth ETF (IJT)
• Vanguard Small-Cap Growth ETF (VBK)
• Invesco S&P SmallCap 600 Pure Growth ETF (RZG)

Expense Ratio:

0.24%

Investment Approach and Strategy:

• Strategy: Track the Russell 2000® Growth Index.
• Composition: Approximately 95% of the fund's assets are invested in stocks of companies in the Russell 2000® Growth Index. The remaining assets are invested in cash and cash equivalents.

Key Points:

• IWO is a low-cost, liquid, and tax-efficient way to invest in the small-cap growth market.
• The fund has a strong track record of outperforming its benchmark index.
• IWO is a good option for investors who are looking for long-term capital appreciation.

Risks:

• Volatility: Small-cap stocks are generally more volatile than large-cap stocks.
• Market Risk: The value of IWO's investments can decline due to factors such as a recession or a decline in the stock market.
• Index Tracking Risk: IWO may not track the Russell 2000® Growth Index perfectly.

Who Should Consider Investing:

IWO is suitable for investors who:

• Have a long-term investment horizon.
• Are comfortable with a higher level of volatility.
• Believe that the U.S. small-cap growth market will continue to grow in the coming years.

Fundamental Rating Based on AI: 8/10

IWO has a strong overall fundamental rating based on our AI analysis. The fund has a low expense ratio, a strong track record, and a good long-term growth outlook. However, investors should be aware of the risks associated with investing in small-cap stocks.

Resources and Disclaimers:

• iShares Russell 2000 Growth ETF website: https://www.ishares.com/us/products/etf/etf-detail?product=iwo
• Russell 2000® Growth Index Methodology: https://www.ftserussell.com/products/indices/russell-2000-growth-index

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