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Is iShares Core S&P U.S. Growth ETF (IUSG) a Strong ETF Right Now?
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The iShares Core S&P U.S. Growth ETF (IUSG - Free Report) was launched on 07/24/2000, and is a smart beta exchange traded fund designed to offer 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.
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.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other 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 $21.07 billion, making it the largest ETF in the Style Box - All Cap Growth. Before fees and expenses, IUSG 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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.04% for this ETF, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 0.58%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
For IUSG, it has heaviest allocation in the Information Technology sector --about 37.70% of the portfolio --while Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Nvidia Corp (NVDA - Free Report) accounts for about 10.47% of total assets, followed by Apple Inc (AAPL - Free Report) and Microsoft Corp (MSFT - Free Report) .
Its top 10 holdings account for approximately 49.62% of IUSG's total assets under management.
Performance and Risk
Year-to-date, the iShares Core S&P U.S. Growth ETF has added roughly 1.74% so far, and was up about 28.62% over the last 12 months (as of 02/24/2025). IUSG has traded between $109.98 and $146.45 in this past 52-week period.
The fund has a beta of 1.07 and standard deviation of 20.99% for the trailing three-year period, which makes IUSG a medium risk choice in this particular space. With about 453 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.
IShares Morningstar Growth ETF (ILCG - Free Report) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID and the Fidelity Blue Chip Growth ETF (FBCG - Free Report) tracks ----------------------------------------. IShares Morningstar Growth ETF has $2.51 billion in assets, Fidelity Blue Chip Growth ETF has $4.09 billion. ILCG has an expense ratio of 0.04% and FBCG charges 0.59%.
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?
The iShares Core S&P U.S. Growth ETF (IUSG - Free Report) was launched on 07/24/2000, and is a smart beta exchange traded fund designed to offer 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.
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.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other 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 $21.07 billion, making it the largest ETF in the Style Box - All Cap Growth. Before fees and expenses, IUSG 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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.04% for this ETF, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 0.58%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
For IUSG, it has heaviest allocation in the Information Technology sector --about 37.70% of the portfolio --while Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Nvidia Corp (NVDA - Free Report) accounts for about 10.47% of total assets, followed by Apple Inc (AAPL - Free Report) and Microsoft Corp (MSFT - Free Report) .
Its top 10 holdings account for approximately 49.62% of IUSG's total assets under management.
Performance and Risk
Year-to-date, the iShares Core S&P U.S. Growth ETF has added roughly 1.74% so far, and was up about 28.62% over the last 12 months (as of 02/24/2025). IUSG has traded between $109.98 and $146.45 in this past 52-week period.
The fund has a beta of 1.07 and standard deviation of 20.99% for the trailing three-year period, which makes IUSG a medium risk choice in this particular space. With about 453 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.
IShares Morningstar Growth ETF (ILCG - Free Report) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID and the Fidelity Blue Chip Growth ETF (FBCG - Free Report) tracks ----------------------------------------. IShares Morningstar Growth ETF has $2.51 billion in assets, Fidelity Blue Chip Growth ETF has $4.09 billion. ILCG has an expense ratio of 0.04% and FBCG charges 0.59%.
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.