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Is iShares Core S&P U.S. Growth ETF (IUSG) a Strong ETF Right Now?
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A smart beta exchange traded fund, the iShares Core S&P U.S. Growth ETF (IUSG - Free Report) debuted on 07/24/2000, and offers broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Blackrock. IUSG has been able to amass assets over $11.84 billion, making it one of the largest ETFs in the Style Box - All Cap Growth. This particular fund, before fees and expenses, seeks to match the performance of the S&P 900 Growth Index.
The S&P 900 Growth Index measures the performance of the large and mid-capitalization growth sector of the U.S. equity market.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
IUSG's 12-month trailing dividend yield is 0.97%.
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.
Representing 35.40% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Healthcare and Consumer Discretionary round out the top three.
Taking into account individual holdings, Apple Inc (AAPL - Free Report) accounts for about 10.70% of the fund's total assets, followed by Microsoft Corp (MSFT - Free Report) and Alphabet Inc Class A (GOOGL - Free Report) .
Performance and Risk
The ETF return is roughly 5.74% so far this year and is down about -13.34% in the last one year (as of 03/06/2023). In the past 52-week period, it has traded between $78.88 and $108.44.
The ETF has a beta of 1.05 and standard deviation of 27.73% for the trailing three-year period, making it a medium risk choice in the space. With about 467 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P U.S. Growth ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
First Trust US Equity Opportunities ETF (FPX - Free Report) tracks IPOX-100 U.S. Index and the iShares Morningstar Growth ETF (ILCG - Free Report) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID. First Trust US Equity Opportunities ETF has $840.84 million in assets, iShares Morningstar Growth ETF has $1.54 billion. FPX has an expense ratio of 0.57% and ILCG charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
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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Is iShares Core S&P U.S. Growth ETF (IUSG) a Strong ETF Right Now?
A smart beta exchange traded fund, the iShares Core S&P U.S. Growth ETF (IUSG - Free Report) debuted on 07/24/2000, and offers broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Blackrock. IUSG has been able to amass assets over $11.84 billion, making it one of the largest ETFs in the Style Box - All Cap Growth. This particular fund, before fees and expenses, seeks to match the performance of the S&P 900 Growth Index.
The S&P 900 Growth Index measures the performance of the large and mid-capitalization growth sector of the U.S. equity market.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
IUSG's 12-month trailing dividend yield is 0.97%.
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.
Representing 35.40% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Healthcare and Consumer Discretionary round out the top three.
Taking into account individual holdings, Apple Inc (AAPL - Free Report) accounts for about 10.70% of the fund's total assets, followed by Microsoft Corp (MSFT - Free Report) and Alphabet Inc Class A (GOOGL - Free Report) .
Performance and Risk
The ETF return is roughly 5.74% so far this year and is down about -13.34% in the last one year (as of 03/06/2023). In the past 52-week period, it has traded between $78.88 and $108.44.
The ETF has a beta of 1.05 and standard deviation of 27.73% for the trailing three-year period, making it a medium risk choice in the space. With about 467 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P U.S. Growth ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
First Trust US Equity Opportunities ETF (FPX - Free Report) tracks IPOX-100 U.S. Index and the iShares Morningstar Growth ETF (ILCG - Free Report) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID. First Trust US Equity Opportunities ETF has $840.84 million in assets, iShares Morningstar Growth ETF has $1.54 billion. FPX has an expense ratio of 0.57% and ILCG charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
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.