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Should iShares Russell MidCap ETF (IWR) Be on Your Investing Radar?
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Launched on 07/17/2001, the iShares Russell MidCap ETF (IWR - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $27.96 billion, making it one of the largest ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.18%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.43%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 15.70% of the portfolio. Industrials and Financials round out the top three.
Looking at individual holdings, Synopsys Inc (SNPS - Free Report) accounts for about 0.57% of total assets, followed by Cadence Design Systems Inc (CDNS - Free Report) and Oreilly Automotive Inc (ORLY - Free Report) .
The top 10 holdings account for about 2.42% of total assets under management.
Performance and Risk
IWR seeks to match the performance of the Russell MidCap Index before fees and expenses. The Russell Midcap Index measures the performance of the mid-capitalization sector of the U.S. equity market.
The ETF has lost about -15.01% so far this year and is down about -16.34% in the last one year (as of 11/21/2022). In the past 52-week period, it has traded between $62.09 and $83.65.
The ETF has a beta of 1.08 and standard deviation of 27.30% for the trailing three-year period, making it a medium risk choice in the space. With about 832 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell MidCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IWR is a good option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard MidCap ETF (VO - Free Report) and the iShares Core S&P MidCap ETF (IJH - Free Report) track a similar index. While Vanguard MidCap ETF has $50.90 billion in assets, iShares Core S&P MidCap ETF has $64.91 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should iShares Russell MidCap ETF (IWR) Be on Your Investing Radar?
Launched on 07/17/2001, the iShares Russell MidCap ETF (IWR - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $27.96 billion, making it one of the largest ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.18%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.43%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 15.70% of the portfolio. Industrials and Financials round out the top three.
Looking at individual holdings, Synopsys Inc (SNPS - Free Report) accounts for about 0.57% of total assets, followed by Cadence Design Systems Inc (CDNS - Free Report) and Oreilly Automotive Inc (ORLY - Free Report) .
The top 10 holdings account for about 2.42% of total assets under management.
Performance and Risk
IWR seeks to match the performance of the Russell MidCap Index before fees and expenses. The Russell Midcap Index measures the performance of the mid-capitalization sector of the U.S. equity market.
The ETF has lost about -15.01% so far this year and is down about -16.34% in the last one year (as of 11/21/2022). In the past 52-week period, it has traded between $62.09 and $83.65.
The ETF has a beta of 1.08 and standard deviation of 27.30% for the trailing three-year period, making it a medium risk choice in the space. With about 832 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell MidCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IWR is a good option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard MidCap ETF (VO - Free Report) and the iShares Core S&P MidCap ETF (IJH - Free Report) track a similar index. While Vanguard MidCap ETF has $50.90 billion in assets, iShares Core S&P MidCap ETF has $64.91 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.