iShares Russell Mid-Cap ETF (IWR)IWR

ETF iShares Russell Mid-Cap ETF (IWR) Summary

Profile:

IWR is an exchange-traded fund (ETF) that tracks the Russell Midcap Index, which represents the performance of mid-sized companies in the U.S. equity market. The ETF invests in a diversified portfolio of approximately 765 mid-cap stocks across various sectors, with a focus on value stocks.

Objective:

IWR aims to provide investors with broad exposure to the mid-cap segment of the U.S. equity market, offering potential for capital appreciation and income generation.

Issuer:

BlackRock, the world's largest asset manager, issues IWR.

Reputation and Reliability:

BlackRock has a strong reputation as a reliable and experienced issuer with a long track record of managing various investment products.

Management:

BlackRock employs a dedicated team of portfolio managers with extensive experience in managing index-tracking funds like IWR.

Market Share:

IWR is the largest mid-cap ETF by assets under management, capturing a significant portion of the mid-cap ETF market.

Total Net Assets:

As of November 3, 2023, IWR held total net assets of approximately $88.5 billion.

Moat:

IWR's competitive advantages include its large asset base, low expense ratio, and efficient tracking of the Russell Midcap Index.

Financial Performance:

Historically, IWR has delivered performance closely aligned with the Russell Midcap Index, providing investors with competitive returns.

Benchmark Comparison:

IWR has outperformed the S&P 500 Index and the Russell 2000 Index over the past 3 and 5-year periods.

Growth Trajectory:

The mid-cap segment is expected to continue to grow alongside the overall U.S. economy, offering potential for ongoing growth in IWR's assets and performance.

Liquidity:

IWR exhibits high liquidity with an average daily trading volume exceeding 20 million shares.

Bid-Ask Spread:

IWR has a tight bid-ask spread, indicating efficient trading with minimal transaction costs.

Market Dynamics:

Factors affecting IWR's market environment include economic growth, interest rate fluctuations, and sector performance, particularly within the mid-cap segment.

Competitors:

Key competitors of IWR include SPDR S&P MidCap 400 ETF (MDY), iShares Core S&P Mid-Cap ETF (IJH), and Vanguard Mid-Cap ETF (VO).

Expense Ratio:

IWR's expense ratio is 0.15% per year, making it a cost-effective investment option.

Investment Approach and Strategy:

IWR passively tracks the Russell Midcap Index, investing in the same constituents and weightings as the index. The ETF holds a diversified portfolio of mid-cap stocks, aiming to capture the overall performance of the mid-cap market segment.

Key Points:

• Large and diverse mid-cap exposure.
• Strong historical performance.
• Low expense ratio.
• High liquidity.

Risks:

• Market risk: IWR's value is directly tied to the performance of mid-cap stocks, which can be volatile.
• Sector risk: The ETF's concentration in value stocks exposes it to potential underperformance compared to growth-oriented segments.
• Tracking error: While aiming to closely track the index, slight deviations in performance might occur.

Who Should Consider Investing:

IWR is suitable for investors seeking:

• Broad exposure to mid-sized U.S. companies.
• Value-oriented investment strategy.
• Low-cost and efficient access to the mid-cap market.

Fundamental Rating Based on AI:

Based on an AI-based analysis of financial health, market position, and future potential, IWR receives a fundamental rating of 8 out of 10. This rating reflects the ETF's strong track record, size, liquidity, and competitive positioning within the mid-cap ETF space.

Resources and Disclaimers:

• iShares Website: https://www.ishares.com/us/products/239640/ishares-russell-midcap-etf
• Russell Midcap Index: https://www.ftserussell.com/data/tearsheets/indices/FTSE-Russell-Midcap-Index.pdf

Disclaimer: This is not financial advice. Please consult with a qualified financial advisor before making any investment decisions.