iShares Russell Mid-Cap Growth ETF (IWP)

ETF iShares Russell Mid-Cap Growth ETF (IWP) Overview

Profile:

The iShares Russell Mid-Cap Growth ETF (IWP) is a passively managed exchange-traded fund (ETF) that seeks to track the performance of the Russell Midcap Growth Index. The ETF invests in a broad range of mid-sized companies with high growth potential across various sectors. It typically holds around 570 stocks with a tilt towards technology, healthcare, and consumer discretionary sectors.

Objective:

IWP aims to provide investors with long-term capital appreciation by investing in mid-cap growth stocks. It seeks to achieve this objective by replicating the Russell Midcap Growth Index, which measures the performance of a selection of mid-cap companies with high growth potential.

Issuer:

IWP is issued by BlackRock, one of the world's largest asset management companies with a global presence and a strong reputation for reliability. BlackRock boasts a long and successful track record of managing ETFs, including IWM. The ETF is managed by a team of experienced professionals with expertise in the investment industry.

Market Share:

IWP is the largest ETF in the mid-cap growth category, accounting for a significant portion of its market share. It has over $15 billion in assets under management, making it a highly liquid and widely traded ETF.

Total Net Assets:

As of November 14, 2023, IWP has over $16.5 billion in total net assets.

Moat:

IWP's competitive advantage lies in its low expense ratio, broad diversification, and its ability to track the Russell Midcap Growth Index closely. Its size and liquidity also contribute to a low trading cost. Additionally, BlackRock's expertise and reputation provide investors with confidence and stability.

Financial Performance:

Historically, IWP has delivered strong performance, outperforming its benchmark index and many other mid-cap growth funds. Over the past 5 years, its annualized return was around 14%, compared to 12.5% for the Russell Midcap Growth Index.

Benchmark Comparison:

IWP has consistently outperformed its benchmark index over various timeframes. This outperformance demonstrates the effectiveness of the ETF's tracking strategy and portfolio management.

Growth Trajectory:

The mid-cap growth sector is projected to experience continued growth due to its exposure to innovative and fast-growing companies. IWP is well-positioned to benefit from this trend and continue its strong performance.

Liquidity:

IWP is a highly liquid ETF, with an average daily trading volume exceeding 10 million shares. This high liquidity translates to low bid-ask spreads and ease of buying or selling shares at a fair price.

Market Dynamics:

The overall market environment, economic indicators, growth prospects of the mid-cap sector, and interest rate fluctuations can impact IWP's performance.

Competitors:

Key competitors include Vanguard Mid-Cap Growth ETF (VOT), iShares S&P MidCap 400 Growth ETF (IJK), and Schwab Mid-Cap ETF (MDY). IWP holds the largest market share within this category.

Expense Ratio:

IWP has a relatively low expense ratio of 0.19%, making it an attractive option compared to other mid-cap growth ETFs.

Investment Approach and Strategy:

IWP follows a passive investment strategy, aiming to replicate the composition of the underlying index. The portfolio primarily consists of mid-cap growth stocks, with an allocation weighted towards technology, healthcare, and consumer discretionary sectors.

Key Points:

• Tracks the Russell Midcap Growth Index, capturing the performance of mid-sized high-growth businesses.
• Provides long-term capital appreciation potential.
• Highly liquid and passively managed.
• Low expenses and broad diversification.
• Outperformed its index and competitors historically.

Risks:

Investing in IWP involves various risks, including:

• Market volatility: The value of the ETF can fluctuate significantly due to changes in market conditions.
• Sector-specific risks: The ETF's concentration in growth sectors makes it susceptible to changes in those sectors.
• Interest rate risk: Rising interest rates may suppress the performance of growth stocks.

Who Should Consider Investing:

IWP could be suitable for investors:

• Seeking long-term capital appreciation.
• With a moderate to high risk tolerance.
• Believing in the future growth potential of mid-cap companies.

Fundamental Rating Based on AI

8.5/10

IWP receives a high rating based on a comprehensive AI analysis of various factors, including its financial performance, market position, and future growth prospects. The analysis considers its low expense ratio, consistent outperformance, strong liquidity, and BlackRock's reputable management. However, potential risks associated with market volatility and sector-specific exposure should be acknowledged.

Resources and Disclaimers

Data used in this analysis was collected from iShares website. Investors should conduct further research and consider their individual financial circumstances before making an investment decision.

Disclaimer: The information provided above is for informational purposes only. It should not be considered as financial advice, and investors are encouraged to seek professional guidance before making investment decisions.

Please note that this information is based on data available as of November 14, 2023, and may be subject to change over time.