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Should iShares S&P Mid-Cap 400 Growth ETF (IJK) Be on Your Investing Radar?
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Looking for broad exposure to the Mid Cap Growth segment of the US equity market? You should consider the iShares S&P Mid-Cap 400 Growth ETF (IJK - Free Report) , a passively managed exchange traded fund launched on 07/24/2000.
The fund is sponsored by Blackrock. It has amassed assets over $9.33 billion, making it one of the larger ETFs attempting to match the Mid Cap Growth segment of the US equity market.
Why Mid Cap Growth
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. These types of companies, then, have a good balance of stability and growth potential.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Further, growth stocks have a higher level of volatility associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
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 0.17%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.85%.
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 Industrials sector--about 29.80% of the portfolio. Consumer Discretionary and Information Technology round out the top three.
Looking at individual holdings, Carlisle Companies Inc (CSL - Free Report) accounts for about 1.36% of total assets, followed by Lennox International Inc (LII - Free Report) and Williams Sonoma Inc (WSM - Free Report) .
The top 10 holdings account for about 7.24% of total assets under management.
Performance and Risk
IJK seeks to match the performance of the S&P MidCap 400 Growth Index before fees and expenses. The S&P MidCap 400 Growth Index measures the performance of the mid-capitalization growth sector of the U.S. equity market.
The ETF return is roughly 16.20% so far this year and was up about 29.54% in the last one year (as of 10/09/2024). In the past 52-week period, it has traded between $67.78 and $93.54.
The ETF has a beta of 1.08 and standard deviation of 21.15% for the trailing three-year period, making it a medium risk choice in the space. With about 259 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares S&P Mid-Cap 400 Growth 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, IJK is a good option for those seeking exposure to the Style Box - Mid Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Mid-Cap Growth ETF (VOT - Free Report) and the iShares Russell Mid-Cap Growth ETF (IWP - Free Report) track a similar index. While Vanguard Mid-Cap Growth ETF has $14.24 billion in assets, iShares Russell Mid-Cap Growth ETF has $15.12 billion. VOT has an expense ratio of 0.07% and IWP charges 0.23%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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 S&P Mid-Cap 400 Growth ETF (IJK) Be on Your Investing Radar?
Looking for broad exposure to the Mid Cap Growth segment of the US equity market? You should consider the iShares S&P Mid-Cap 400 Growth ETF (IJK - Free Report) , a passively managed exchange traded fund launched on 07/24/2000.
The fund is sponsored by Blackrock. It has amassed assets over $9.33 billion, making it one of the larger ETFs attempting to match the Mid Cap Growth segment of the US equity market.
Why Mid Cap Growth
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. These types of companies, then, have a good balance of stability and growth potential.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Further, growth stocks have a higher level of volatility associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
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 0.17%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.85%.
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 Industrials sector--about 29.80% of the portfolio. Consumer Discretionary and Information Technology round out the top three.
Looking at individual holdings, Carlisle Companies Inc (CSL - Free Report) accounts for about 1.36% of total assets, followed by Lennox International Inc (LII - Free Report) and Williams Sonoma Inc (WSM - Free Report) .
The top 10 holdings account for about 7.24% of total assets under management.
Performance and Risk
IJK seeks to match the performance of the S&P MidCap 400 Growth Index before fees and expenses. The S&P MidCap 400 Growth Index measures the performance of the mid-capitalization growth sector of the U.S. equity market.
The ETF return is roughly 16.20% so far this year and was up about 29.54% in the last one year (as of 10/09/2024). In the past 52-week period, it has traded between $67.78 and $93.54.
The ETF has a beta of 1.08 and standard deviation of 21.15% for the trailing three-year period, making it a medium risk choice in the space. With about 259 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares S&P Mid-Cap 400 Growth 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, IJK is a good option for those seeking exposure to the Style Box - Mid Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Mid-Cap Growth ETF (VOT - Free Report) and the iShares Russell Mid-Cap Growth ETF (IWP - Free Report) track a similar index. While Vanguard Mid-Cap Growth ETF has $14.24 billion in assets, iShares Russell Mid-Cap Growth ETF has $15.12 billion. VOT has an expense ratio of 0.07% and IWP charges 0.23%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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.