The iShares Russell Mid-Cap Growth ETF (IWP) offers a solid investment option for those seeking mid-cap growth exposure
New York: If you’re looking to dive into mid-cap growth stocks, the iShares Russell Mid-Cap Growth ETF (IWP) is a solid choice. Launched in 2001, this ETF is managed by Blackrock and has over $17.62 billion in assets, making it a heavyweight in the mid-cap growth space.
Mid-cap companies, which have market caps between $2 billion and $10 billion, often show better growth potential than larger firms while being less risky than smaller ones. So, investing in these companies can be a smart move.
Growth stocks typically have higher sales and earnings growth rates, but they also come with higher valuations and risks. While they can outperform value stocks in booming markets, value stocks tend to offer better returns overall.
When it comes to costs, this ETF has an expense ratio of 0.23%, which is pretty standard for its peers. Plus, it offers a 12-month trailing dividend yield of 0.40%.
Investors should also check the ETF’s holdings. IWP has a significant chunk of its portfolio—about 27.40%—in the Information Technology sector, with top holdings like Palantir Technologies, AppLovin, and Trade Desk.
In terms of performance, IWP aims to match the Russell MidCap Growth Index. So far this year, it’s up about 0.16% and has seen a 23.52% increase over the past year. It trades between $101.94 and $138.52 in the last 52 weeks.
With a beta of 1.13, it’s considered a medium-risk option, and it diversifies risk well with around 293 holdings.
IWP has a Zacks ETF Rank of 2 (Buy), making it a great pick for those interested in mid-cap growth. Other options include the iShares S&P Mid-Cap 400 Growth ETF and the Vanguard Mid-Cap Growth ETF, which also track similar indices.
More and more investors are leaning towards passively managed ETFs for their low costs and transparency. They’re excellent for long-term investing.
If you want to stay updated on ETFs, check out Zacks ETF Center for more info and articles.
