iShares Russell Top 200 Growth ETF: A Strategic Investment?

Analyzing the iShares Russell Top 200 Growth ETF (IWY) reveals its solid exposure to large-cap growth stocks, transparency, and low costs. Investors should consider its strong portfolio dominated by major tech players as a stable option for the upcoming months.

Date: 09-05-2025

AI Rating: 6

Overview of iShares Russell Top 200 Growth ETF (IWY)
As a significant player in the large-cap growth segment, the iShares Russell Top 200 Growth ETF (IWY) offers investors a diversified exposure with a focus on tech-heavy holdings like Apple, Microsoft, and Nvidia. Its sizeable asset base of over $12.20 billion signifies substantial investor interest, particularly in the current market climate where larger companies tend to outperform.

Cost-Effectiveness
The ETF’s annual operating expense ratio stands at a low 0.20%, a factor that professional investors consider favorable compared to peers. Lower costs can lead to stronger net returns over time, making IWY an attractive option for cost-conscious investors.

Performance Insights
While IWY has demonstrated a 11.55% gain over the past year, it has also experienced a notable year-to-date decline of -7.64%. This contrast indicates an inherent volatility typical with growth stocks, yet the fund's long-term performance trajectory aligns well with broader market trends, especially during prolonged bull markets.

Sector Exposure and Company Holdings
With about 46.90% exposure to the Information Technology sector, the ETF leverages the growth potential of technology giants. Notably, the top three holdings—Apple, Microsoft, and Nvidia—account for a significant 58.48% of total assets. Investors may find these tech-oriented stocks appealing due to their historical performance and dominant market positions.

Ratings Overview
The ETF carries a Zacks ETF Rank of 3 (Hold), suggesting a neutral outlook and reflecting its position within the broader investing landscape. This neutral rating may indicate stability but does not signal significant outperformance, thereby compelling investors to weigh their options carefully.

Stocks: AAPL MSFT NVDA