Should iShares Russell 1000 Growth ETF (IWF) Be on Your Investing Radar?

Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the iShares Russell 1000 Growth ETF (IWF) is a passively managed exchange traded fund launched on 05/22/2000.The fund is sponsored by Blackrock. It has amassed assets over $106.71 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.Why Large Cap GrowthLarge cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.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. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.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 0.19%, making it one of the cheaper products in the space.It has a 12-month trailing dividend yield of 0.45%.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 Information Technology sector--about 48.20% of the portfolio. Consumer Discretionary and Telecom round out the top three.Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.87% of total assets, followed by Nvidia Corp (NVDA) and Microsoft Corp (MSFT).The top 10 holdings account for about 61.21% of total assets under management.Performance and RiskIWF seeks to match the performance of the Russell 1000 Growth Index before fees and expenses. The Russell 1000 Growth Index measures the performance of the large-capitalization growth sector of the U.S. equity market.The ETF has gained about 0.83% so far this year and was up about 33.11% in the last one year (as of 01/16/2025). In the past 52-week period, it has traded between $303.74 and $418.94.The ETF has a beta of 1.08 and standard deviation of 22.04% for the trailing three-year period, making it a medium risk choice in the space. With about 400 holdings, it effectively diversifies company-specific risk.AlternativesIShares Russell 1000 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWF is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $157.29 billion in assets, Invesco QQQ has $321.60 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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.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 Russell 1000 Growth ETF (IWF): ETF Research Reports Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): 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