Should iShares Russell Mid-Cap ETF (IWR) Be on Your Investing Radar?

Designed to provide broad exposure to the Mid Cap Blend segment of the US equity market, the iShares Russell Mid-Cap ETF (IWR) is a passively managed exchange traded fund launched on 07/17/2001.The fund is sponsored by Blackrock. It has amassed assets over $39.97 billion, making it one of the largest ETFs attempting to match the Mid Cap Blend segment of the US equity market.Why Mid Cap BlendCompared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. 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.CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.Annual operating expenses for this ETF are 0.19%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.22%.Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.This ETF has heaviest allocation to the Industrials sector--about 17.10% of the portfolio. Financials and Information Technology round out the top three.Looking at individual holdings, Palantir Technologies Inc Class A (PLTR) accounts for about 1.29% of total assets, followed by Applovin Corp Class A (APP) and Arthur J Gallagher (AJG).The top 10 holdings account for about 6.18% of total assets under management.Performance and RiskIWR seeks to match the performance of the Russell MidCap Index before fees and expenses. The Russell Midcap Index measures the performance of the mid-capitalization sector of the U.S. equity market.The ETF has added about 4.15% so far this year and it's up approximately 21.62% in the last one year (as of 02/03/2025). In the past 52-week period, it has traded between $76.92 and $95.52.The ETF has a beta of 1.11 and standard deviation of 18.64% for the trailing three-year period, making it a medium risk choice in the space. With about 817 holdings, it effectively diversifies company-specific risk.AlternativesIShares Russell 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, IWR is a reasonable 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 $76.27 billion in assets, iShares Core S&P Mid-Cap ETF has $99.39 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.Bottom-LineAn increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also 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 Mid-Cap ETF (IWR): ETF Research Reports 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 Reports Palantir Technologies Inc. (PLTR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks