Large Cap Growth ETF Shows Strong Performance and Low Costs

According to a recent report, the iShares Russell 1000 Growth ETF has delivered impressive returns and maintains a low expense ratio. With a significant portion allocated to leading tech companies, this ETF remains a strong option for investors eyeing the growth segment of the market.

Date: 14-09-2024

AI Rating: 7

The iShares Russell 1000 Growth ETF (IWF) is highlighted in the report for its robust performance and low cost structure. It has amassed assets over $95.83 billion, providing broad exposure to the large-cap growth sector. This ETF has generated a return of approximately 20.73% year-to-date and was up about 32% in the prior year, showcasing its capacity for strong returns.

Furthermore, the ETF maintains a relatively low expense ratio of 0.19%, which is noted to significantly enhance long-term performance when compared to more expensive funds. This factor is crucial as lower costs can lead to better total returns over time.

The report mentions that the ETF's top holdings include major players like Apple Inc (AAPL), which constitutes about 12.60% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). This concentration in leading technology stocks indicates a strong potential for future performance due to their growth trajectories.

Regarding risks, the ETF's beta of 1.09 suggests that it has a slightly higher volatility compared to the market. With a standard deviation of 22.26%, this indicates medium risk, which is acceptable for growth-oriented investors.

Overall, the IWF ETF is rated as a Zacks ETF Rank of 2 (Buy), driven by expected asset class returns, favorable momentum, and cost efficiency. Investors seeking growth exposure may consider this ETF as part of their portfolios for long-term benefits.

Stocks: IWF AAPL MSFT NVDA