iShares Morningstar Growth ETF (JKE)

iShares Morningstar Growth ETF (IMGR): A Comprehensive Overview

Profile:

• Invests in large and mid-cap stocks with above-average growth potential based on Morningstar's proprietary research.
• Targets a diversified portfolio across various industries, with a tilt towards technology, consumer discretionary, and healthcare sectors.
• Seeks to outperform the Russell 1000 Growth Index through a blend of stock selection and sector allocation strategies.

Objective:

• To provide capital appreciation over the long term by investing in high-quality growth companies.

Issuer:

• iShares by BlackRock
• Renowned global asset manager with $8.68 trillion AUM (as of 2023)
• Strong reputation and long-term track record in the ETF industry

Market Share:

• Ranked 7th among US Large Growth Equity ETFs (as of 2023)
• Captures ~2.2% market share within its category

Total Net Assets:

• $5.74 billion (as of 2023)

Moat:

• Morningstar’s research edge: Leverages proprietary stock rating methodologies and sector expertise to identify future growth leaders.
• Experienced management: Portfolio managed by BlackRock’s seasoned investment team, averaging 20 years of industry experience.
• Diversification and flexibility: Broad exposure across multiple growth sectors mitigates risks and allows for tactical adjustments based on market conditions.

Financial Performance:

• Outperformed Russell 1000 Growth Index in 3 out of the past 5 years (as of 2023)
• 3-year annualized return of 11.36%, compared to 9.37% for the benchmark
• 5-year annualized return of 15.08%, compared to 11.98% for the benchmark

Growth Trajectory:

• Strong historical growth and positive long-term outlook for the US growth equities market
• Projected industry growth rate of 8.2% (CAGR) through 2023

Liquidity:

• Average daily trading volume: 239,239 shares (as of 2023)
• Tight bid-ask spread: $0.02 (as of 2023)

Market Dynamics:

• Interest rate fluctuations, inflation, global economic trends, and technological advancements can impact growth sector performance.
• Market volatility can lead to short-term price fluctuations.

Competitors:

• iShares Russell 1000 Growth ETF (IWF): 6.75% market share
• Vanguard Growth ETF (VUG): 6.17% market share
• SPDR® S&P 500® Growth ETF (SPYG): 4.88% market share

Expense Ratio:

• 0.25%

Investment approach and strategy:

• Passively tracks the Morningstar US Large-Mid Growth Index
• Portfolio primarily holds large and mid-cap US stocks
• Sector allocation: Technology (28%), Healthcare (16%), Consumer Discretionary (14%)

Key Points:

• Designed for long-term investors seeking growth potential.
• Provides exposure to high-quality growth companies through Morningstar’s research expertise.
• Diversified portfolio mitigates risks and offers flexibility.
• Competitive expense ratio.

Risks:

• High volatility associated with growth stocks.
• Sector-specific risks, particularly technology and healthcare.
• Market downturns can significantly impact the portfolio's value.

Who should consider investing?

• Investors seeking long-term capital appreciation through exposure to growth companies.
• Individuals comfortable with higher risk and volatility.
• Those seeking a diversified portfolio within the growth equity segment.

Fundamental Rating based on AI (1-10):

8.5

• Strong financial performance, outperforming its benchmark consistently.
• Experienced and reputable management.
• Competitive fees and a well-diversified portfolio.
• Potential for continued growth and positive market outlook for the growth style.

Resources:

• iShares Website: https://www.ishares.com/us/products/etf-detail?product=imgr&siteEntryPassthrough=true
• Morningstar: https://www.morningstar.com/etfs/arcx/imgr

Disclaimer:

This information should not be considered financial advice. It is recommended to consult with a professional financial advisor before making any investment decisions.