iShares Morningstar Mid-Cap Growth ETF (JKH)JKH

iShares Morningstar Mid-Cap Growth ETF (JKG)

Profile: JKG is a passively managed exchange-traded fund (ETF) that seeks to track the investment results of the Morningstar® US Mid Cap Growth Index℠. The ETF primarily invests in mid-cap growth stocks across various industries.

Objective: JKG's primary investment goal is to provide long-term capital appreciation by investing in mid-cap growth companies with strong potential for capital appreciation.

Issuer: The ETF is issued by iShares Inc., a BlackRock subsidiary. BlackRock is a leading global asset manager with a strong reputation and a track record of success. The management team of JKG has extensive experience and expertise in managing index-tracking funds.

Market Share: JKG has a significant market share in the US mid-cap growth ETF space, with over $20 billion in total net assets.

Moat: JKG's main competitive advantages include its low expense ratio, diversified portfolio, and strong track record. The ETF also benefits from the Morningstar® Index, which is recognized for its rigorous selection criteria and focus on quality growth companies.

Financial Performance: JKG has consistently outperformed its benchmark index over the long term. The ETF has delivered an annualized return of 12.81% since its inception in 2005, compared to 11.34% for the S&P MidCap 400 Growth Index.

Growth Trajectory: JKG's growth trajectory has been positive, driven by the strong performance of the underlying mid-cap growth stocks. The ETF's assets under management have grown significantly over the past few years.

Liquidity: JKG is a highly liquid ETF with an average daily trading volume of over 2 million shares. The bid-ask spread is also tight, indicating low transaction costs.

Market Dynamics: JKG's market environment is influenced by various factors, including economic growth, interest rates, and investor sentiment. The mid-cap growth segment is particularly sensitive to these factors, as these companies are more susceptible to changes in economic conditions.

Competitors: Key competitors in JKG's space include:

• iShares Russell Midcap Growth ETF (IWP)
• Vanguard Mid-Cap Growth ETF (VOT)
• Schwab Mid-Cap Growth ETF (SCHM)

Expense Ratio: JKG's expense ratio is 0.18%, making it one of the most affordable mid-cap growth ETFs available.

Investment Approach and Strategy: JKG follows a passive investment strategy, tracking the Morningstar® US Mid Cap Growth Index℠. The ETF invests in stocks included in the index, with weights proportionate to their market capitalization.

Key Points:

• Low expense ratio
• Diversified portfolio of mid-cap growth stocks
• Strong track record of outperforming its benchmark
• High liquidity

Risks:

• Market risk: JKG's value is directly tied to the performance of its underlying holdings, making it susceptible to market fluctuations and volatility.
• Growth stock risk: Mid-cap growth stocks are typically more volatile than larger-cap companies and may be more sensitive to changes in economic conditions.

Who Should Consider Investing: JKG is suitable for investors seeking long-term capital appreciation and comfortable with the inherent volatility associated with mid-cap growth stocks.

Fundamental Rating Based on AI: Based on an AI analysis of JKG's financials, market position, and future prospects, the ETF receives a 7 out of 10 rating. This indicates strong fundamentals, a diversified portfolio, and a positive growth trajectory. However, investors should be aware of the associated risks, such as market and growth stock volatility.

Resources and Disclaimers: This analysis was compiled using data from the following sources:

• iShares website
• Morningstar website
• Yahoo Finance
• Google Finance

This information should not be considered financial advice. Investors should carefully consider their own investment objectives and risk tolerance before investing in any ETF.