iShares S&P 500 Growth ETF: Performance Insights and Risks

The iShares S&P 500 Growth ETF (IVW) provides a significant look into the large-cap growth sector. Performance has fluctuated this year, with a notable loss so far, which may impact investor sentiment and future stock valuations.

Date: 11-04-2025

AI Rating: 5

Performance Overview
The iShares S&P 500 Growth ETF (IVW) showcases a year-to-date loss of approximately -8.97%, alongside a positive uptick of 10.13% over the past year. This kind of volatility can significantly affect investor confidence. A consistent decline in performance early in the year indicates potential challenges that may deter new investments, especially as it has traded between $79.31 and $106.69 in the past 52 weeks.

This fluctuation combined with its beta of 1.11 implies that IVW could be more volatile than the overall market, raising red flags for conservative investors. However, the ETF's diversified portfolio of about 212 holdings helps mitigate company-specific risks, thereby distributing uncertainty across a broader range of stocks.

Sector Exposure
Information Technology is the largest sector allocation at 36.80%, heavily featuring top holdings like Nvidia Corp (NVDA), Apple Inc (AAPL), and Microsoft Corp (MSFT). The performance of these tech giants can heavily influence the ETF's valuation. As technology sectors can be sensitive to market changes, a downturn in tech stocks could greatly affect IVW’s market performance.

Expense Ratio
Operating expenses for IVW are set at a competitive 0.18%, positioning it as one of the least expensive options available in its category. This low-cost structure is appealing for cost-conscious investors, particularly in a current market climate where expense ratios can significantly affect overall returns.

Conclusion
With a Zacks ETF Rank of 3 (Hold), IVW may be perceived as a neutral investment at this stage. The ETF offers potential for long-term investors, but the immediate economic climate and performance metrics should encourage careful consideration. Investors may want to observe the performance of underlying holdings and market conditions closely before making new commitments.

Stocks: IVW NVDA AAPL MSFT