iShares Morningstar Mid-Cap Growth ETF (JKH)

iShares Morningstar Mid-Cap Growth ETF (IJK) Overview

Profile:

The iShares Morningstar Mid-Cap Growth ETF (IJK) is a passively managed exchange-traded fund that seeks to track the Morningstar US Mid-Cap Growth Index. The ETF primarily invests in mid-cap growth stocks across various sectors of the US economy. IJK aims to provide long-term capital appreciation through exposure to a diversified portfolio of mid-cap companies with strong growth potential.

Objective:

The primary objective of IJK is to provide investors with exposure to mid-cap growth stocks and the potential for long-term capital appreciation. The ETF aims to achieve this by tracking the Morningstar US Mid-Cap Growth Index, which comprises approximately 250 mid-cap companies with above-average growth potential.

Issuer:

BlackRock is the issuer of IJK. BlackRock is the world's largest asset manager, with over $10 trillion in assets under management. The company has a strong reputation for reliability and expertise in the financial markets.

Market Share:

IJK is one of the largest mid-cap growth ETFs in the market, with over $17 billion in assets under management. It holds a significant market share in the mid-cap growth ETF segment.

Total Net Assets:

IJK currently has over $17 billion in total net assets.

Moat:

IJK enjoys several competitive advantages:

• Low Expense Ratio: IJK has a relatively low expense ratio of 0.25%, making it an attractive option for cost-conscious investors.
• Diversification: The ETF offers investors exposure to a diversified portfolio of mid-cap growth stocks, reducing single-stock risk.
• Passive Management: IJK's passive management approach ensures low turnover and minimizes tracking error.
• Strong Track Record: The ETF has historically outperformed its benchmark index, demonstrating its effectiveness in selecting high-growth companies.

Financial Performance:

IJK has delivered strong historical performance. Over the past 5 years, the ETF has generated an annualized return of 13.5%, outperforming its benchmark index by 1.5%.

Benchmark Comparison:

IJK's performance has consistently exceeded the Morningstar US Mid-Cap Growth Index, indicating its success in selecting high-growth companies.

Growth Trajectory:

The mid-cap growth segment is expected to experience continued growth in the coming years, driven by strong economic fundamentals and technological advancements. IJK is well-positioned to benefit from this growth trend.

Liquidity:

• Average Trading Volume: IJK has a high average daily trading volume, ensuring high liquidity and ease of buying and selling shares.
• Bid-Ask Spread: The ETF's bid-ask spread is relatively tight, indicating low transaction costs.

Market Dynamics:

The mid-cap growth segment is influenced by various factors, including economic growth, interest rates, and technological advancements. Investors should consider these factors when evaluating the ETF's potential performance.

Competitors:

• iShares S&P MidCap 400 Growth ETF (IJT): 4% market share
• Vanguard Mid-Cap Growth ETF (VOE): 3% market share
• Schwab Mid-Cap Growth ETF (SCHM): 2% market share

Expense Ratio:

IJK has an expense ratio of 0.25%, which is lower than the average expense ratio for mid-cap growth ETFs.

Investment Approach and Strategy:

• Strategy: IJK tracks the Morningstar US Mid-Cap Growth Index, which comprises approximately 250 mid-cap companies with above-average growth potential.
• Composition: The ETF primarily invests in mid-cap growth stocks across various sectors, including technology, healthcare, and consumer discretionary.

Key Points:

• IJK offers exposure to a diversified portfolio of mid-cap growth stocks.
• The ETF has a low expense ratio and a strong track record of outperforming its benchmark index.
• IJK is well-positioned to benefit from the long-term growth potential of the mid-cap segment.

Risks:

• Market Risk: The ETF's performance is tied to the performance of the mid-cap growth segment, which can be volatile.
• Growth Stock Risk: Growth stocks are generally more volatile than other types of stocks.
• Interest Rate Risk: Rising interest rates can negatively impact growth stocks.

Who Should Consider Investing:

IJK is suitable for investors seeking long-term capital appreciation and are comfortable with the volatility associated with mid-cap growth stocks. It is particularly suitable for investors with a long-term investment horizon and a moderate to high-risk tolerance.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, IJK receives a Fundamental Rating of 8 out of 10. This rating considers the ETF's financial health, market position, and future prospects. IJK's strong track record, low expense ratio, and exposure to a diversified portfolio of growth stocks contribute to its high rating.

Resources and Disclaimers:

iShares Morningstar Mid-Cap Growth ETF (IJK)

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting your own due diligence.