iShares Russell Mid-Cap Growth ETF (IWP)IWP

iShares Russell Mid-Cap Growth ETF (IWP) Overview

Profile:

The iShares Russell Mid-Cap Growth ETF (IWP) tracks the Russell Midcap Growth Index, investing in mid-sized companies with above-average growth potential across various sectors including technology, healthcare, and consumer discretionary. It follows a passively managed, indexing strategy.

Objective:

The primary investment goal of IWP is to provide long-term capital growth by investing in mid-cap growth stocks.

Issuer:

BlackRock

• Reputation and Reliability: BlackRock is the world's largest asset manager with a strong track record in the ETF industry. The firm is known for its expertise in portfolio management and risk mitigation.
• Management: The ETF is managed by a team of experienced investment professionals with expertise in index-tracking and quantitative analysis.

Market Share:

IWP holds a significant market share within the mid-cap growth ETF space, managing over $27 billion in assets (as of November 22, 2023).

Total Net Assets:

As of November 22, 2023, IWP has about $27.5 billion in total net assets.

Moat:

IWP's competitive advantages include:

• Tracking a well-respected benchmark: The Russell Midcap Growth Index is a widely recognized and trusted benchmark for measuring mid-cap growth stock performance.
• Low expense ratio: IWP has an expense ratio of 0.24%, which is below the average for actively managed mid-cap growth funds.
• Liquidity: IWP is a highly liquid ETF with an average daily trading volume exceeding 1 million shares.

Financial Performance:

Historical Performance: IWP has historically outperformed the broader market, particularly during periods of economic expansion. The ETF delivered an annualized return of 12.5% over the past five years and 10.2% over the past ten years (as of November 22, 2023).

Benchmark Comparison: IWP has consistently outperformed its benchmark, the Russell Midcap Growth Index, over various timeframes.

Growth Trajectory: The mid-cap growth space is expected to continue to grow at a healthy pace, driven by factors such as technological innovation and increasing consumer spending.

Liquidity:

• Average Trading Volume: Over 1 million shares traded daily on average.
• Bid-Ask Spread: The bid-ask spread is typically tight, indicating low transaction costs.

Market Dynamics:

Factors affecting IWP's market environment include:

• Economic growth: A strong economy typically benefits mid-cap growth companies.
• Interest rates: Rising interest rates can impact growth stocks negatively.
• Market volatility: Increased market volatility can lead to higher price fluctuations for IWP.

Competitors:

Key competitors in the mid-cap growth ETF space include:

• iShares S&P MidCap 400 Growth ETF (IJK) - Market share: 15%
• Vanguard Mid-Cap Growth ETF (VOT) - Market share: 13%
• Invesco S&P MidCap Growth ETF (ZMG) - Market share: 3%

Expense Ratio:

0.24%

Investment Approach and Strategy:

• Strategy: IWP passively tracks the Russell Midcap Growth Index.
• Composition: The ETF primarily invests in common stocks of mid-sized companies with high growth potential.

Key Points:

• Tracks a well-established and respected mid-cap growth index.
• Low expense ratio compared to actively managed funds.
• Strong historical performance and track record of outperforming its benchmark.
• High liquidity and tight bid-ask spread.

Risks:

• Market risk: The value of IWP's holdings can fluctuate significantly based on market conditions.
• Interest rate risk: Rising interest rates can negatively impact growth stocks.
• Valuation risk: The ETF may be susceptible to valuation changes driven by economic or market factors.

Who Should Consider Investing:

Investors seeking long-term capital growth through exposure to mid-sized companies with high growth potential and a tolerance for market volatility may consider IWP.

Fundamental Rating Based on AI:

8.5/10

IWP demonstrates strong fundamentals overall, with positive factors including:

• Solid historical performance and track record
• Low expense ratio
• High liquidity
• Tracking a well-respected benchmark

However, potential risks such as market and interest rate sensitivity should be considered before investing.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• iShares website: https://www.ishares.com/us/products/518859/ishares-russell-midcap-growth-etf
• Morningstar: https://www.morningstar.com/etfs/arcx/iwpx/quote

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