Should iShares Morningstar Mid-Cap ETF (IMCB) Be on Your Investing Radar?

The iShares Morningstar Mid-Cap ETF (IMCB) was launched on 06/28/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Blend segment of the US equity market.The fund is sponsored by Blackrock. It has amassed assets over $1.06 billion, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.Why Mid Cap BlendMid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. These types of companies, then, have a good balance of stability and growth potential.Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.CostsInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.It has a 12-month trailing dividend yield of 1.37%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Industrials sector--about 16.20% of the portfolio. Financials and Information Technology round out the top three.Looking at individual holdings, Applovin Corp Class A (APP) accounts for about 0.64% of total assets, followed by Arthur J Gallagher (AJG) and Capital One Financial Corp (COF).The top 10 holdings account for about 5.78% of total assets under management.Performance and RiskIMCB seeks to match the performance of the MORNINGSTAR US MID CAP INDEX before fees and expenses. The Morningstar US Mid Cap Index comprises of mid-capitalization U.S. equities.The ETF has gained about 4.14% so far this year and was up about 20.86% in the last one year (as of 01/28/2025). In the past 52-week period, it has traded between $66.33 and $82.17.The ETF has a beta of 1.09 and standard deviation of 18.17% for the trailing three-year period. With about 440 holdings, it effectively diversifies company-specific risk.AlternativesIShares Morningstar Mid-Cap 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, IMCB is a sufficient option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.The Vanguard Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $75.41 billion in assets, iShares Core S&P Mid-Cap ETF has $98.72 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.Bottom-LineWhile an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares Morningstar Mid-Cap ETF (IMCB): ETF Research Reports Capital One Financial Corporation (COF): Free Stock Analysis Report Arthur J. Gallagher & Co. (AJG): Free Stock Analysis Report AppLovin Corporation (APP): Free Stock Analysis Report iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports Vanguard Mid-Cap ETF (VO): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks