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Is iShares Core S&P U.S. Growth ETF (IUSG) a Strong ETF Right Now?
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Designed to provide broad exposure to the Style Box - All Cap Growth category of the market, the iShares Core S&P U.S. Growth ETF (IUSG - Free Report) is a smart beta exchange traded fund launched on 07/24/2000.
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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
IUSG is managed by Blackrock, and this fund has amassed over $20.03 billion, which makes it the largest ETF in the Style Box - All Cap Growth. IUSG seeks to match the performance of the S&P 900 Growth Index before fees and expenses.
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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.04% for IUSG, making it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 0.67%.
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.
For IUSG, it has heaviest allocation in the Information Technology sector --about 47.90% of the portfolio --while Consumer Discretionary and Telecom round out the top three.
When you look at individual holdings, Apple Inc (AAPL - Free Report) accounts for about 12.14% of the fund's total assets, followed by Microsoft Corp (MSFT - Free Report) and Nvidia Corp (NVDA - Free Report) .
Its top 10 holdings account for approximately 57.28% of IUSG's total assets under management.
Performance and Risk
So far this year, IUSG has gained about 28.77%, and is up roughly 37.91% in the last one year (as of 10/17/2024). During this past 52-week period, the fund has traded between $91.06 and $134.67.
The fund has a beta of 1.07 and standard deviation of 21.50% for the trailing three-year period, which makes IUSG a medium risk choice in this particular space. With about 492 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P U.S. Growth ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Fidelity Blue Chip Growth ETF (FBCG - Free Report) tracks ---------------------------------------- and the iShares Morningstar Growth ETF (ILCG - Free Report) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID. Fidelity Blue Chip Growth ETF has $2.29 billion in assets, iShares Morningstar Growth ETF has $2.37 billion. FBCG has an expense ratio of 0.59% 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?
Designed to provide broad exposure to the Style Box - All Cap Growth category of the market, the iShares Core S&P U.S. Growth ETF (IUSG - Free Report) is a smart beta exchange traded fund launched on 07/24/2000.
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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
IUSG is managed by Blackrock, and this fund has amassed over $20.03 billion, which makes it the largest ETF in the Style Box - All Cap Growth. IUSG seeks to match the performance of the S&P 900 Growth Index before fees and expenses.
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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.04% for IUSG, making it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 0.67%.
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.
For IUSG, it has heaviest allocation in the Information Technology sector --about 47.90% of the portfolio --while Consumer Discretionary and Telecom round out the top three.
When you look at individual holdings, Apple Inc (AAPL - Free Report) accounts for about 12.14% of the fund's total assets, followed by Microsoft Corp (MSFT - Free Report) and Nvidia Corp (NVDA - Free Report) .
Its top 10 holdings account for approximately 57.28% of IUSG's total assets under management.
Performance and Risk
So far this year, IUSG has gained about 28.77%, and is up roughly 37.91% in the last one year (as of 10/17/2024). During this past 52-week period, the fund has traded between $91.06 and $134.67.
The fund has a beta of 1.07 and standard deviation of 21.50% for the trailing three-year period, which makes IUSG a medium risk choice in this particular space. With about 492 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P U.S. Growth ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Fidelity Blue Chip Growth ETF (FBCG - Free Report) tracks ---------------------------------------- and the iShares Morningstar Growth ETF (ILCG - Free Report) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID. Fidelity Blue Chip Growth ETF has $2.29 billion in assets, iShares Morningstar Growth ETF has $2.37 billion. FBCG has an expense ratio of 0.59% 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.