We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should iShares Morningstar MidCap ETF (IMCB) Be on Your Investing Radar?
Read MoreHide Full Article
The iShares Morningstar MidCap ETF (IMCB - Free Report) was launched on 06/28/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $718.71 million, making it one of the average sized 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.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.04%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.70%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 15.40% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Autozone Inc (AZO - Free Report) accounts for about 0.54% of total assets, followed by Realty Income Reit Corp (O - Free Report) and Motorola Solutions Inc (MSI - Free Report) .
The top 10 holdings account for about 3.57% of total assets under management.
Performance and Risk
IMCB seeks to match the performance of the MORNINGSTAR US MID CAP INDEX before fees and expenses. The Morningstar US Mid Cap Index comprises of mid-capitalization U.S. equities.
The ETF return is roughly 0% so far this year and is down about -16.06% in the last one year (as of 01/03/2023). In the past 52-week period, it has traded between $53.66 and $71.22.
The ETF has a beta of 1.06 and standard deviation of 28.72% for the trailing three-year period. With about 531 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Morningstar 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, IMCB 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 $49.64 billion in assets, iShares Core S&P MidCap ETF has $63.50 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should iShares Morningstar MidCap ETF (IMCB) Be on Your Investing Radar?
The iShares Morningstar MidCap ETF (IMCB - Free Report) was launched on 06/28/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $718.71 million, making it one of the average sized 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.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.04%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.70%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 15.40% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Autozone Inc (AZO - Free Report) accounts for about 0.54% of total assets, followed by Realty Income Reit Corp (O - Free Report) and Motorola Solutions Inc (MSI - Free Report) .
The top 10 holdings account for about 3.57% of total assets under management.
Performance and Risk
IMCB seeks to match the performance of the MORNINGSTAR US MID CAP INDEX before fees and expenses. The Morningstar US Mid Cap Index comprises of mid-capitalization U.S. equities.
The ETF return is roughly 0% so far this year and is down about -16.06% in the last one year (as of 01/03/2023). In the past 52-week period, it has traded between $53.66 and $71.22.
The ETF has a beta of 1.06 and standard deviation of 28.72% for the trailing three-year period. With about 531 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Morningstar 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, IMCB 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 $49.64 billion in assets, iShares Core S&P MidCap ETF has $63.50 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.