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

Launched on 07/17/2001, the iShares Russell Mid-Cap Growth ETF (IWP) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Growth segment of the US equity market.The fund is sponsored by Blackrock. It has amassed assets over $17.12 billion, making it the largest ETFs attempting to match the Mid Cap Growth segment of the US equity market.Why Mid Cap GrowthCompared 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. Thus, companies that fall under this category provide a stable and growth-heavy investment.Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.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 0.23%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.42%.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 26.90% of the portfolio. Industrials and Consumer Discretionary round out the top three.Looking at individual holdings, Palantir Technologies Inc Class A (PLTR) accounts for about 2.66% of total assets, followed by Trade Desk Inc Class A (TTD) and Monolithic Power Systems Inc (MPWR).The top 10 holdings account for about 16.1% of total assets under management.Performance and RiskIWP seeks to match the performance of the Russell MidCap Growth Index before fees and expenses. The Russell Midcap Growth Index measures the performance of the mid-capitalization growth sector of the U.S. equity market. It is a subset of the Russell Midcap Index, which measures the performance of the mid-capitalization sector of the U.S. equity market & approximately 47% of the total market value of the Russell Midcap Index.The ETF return is roughly 25.22% so far this year and is up about 43.55% in the last one year (as of 11/11/2024). In the past 52-week period, it has traded between $91.43 and $130.42.The ETF has a beta of 1.10 and standard deviation of 23.15% for the trailing three-year period, making it a medium risk choice in the space. With about 293 holdings, it effectively diversifies company-specific risk.AlternativesIShares Russell Mid-Cap 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, IWP is a great option for investors seeking exposure to the Style Box - Mid Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.The iShares S&P Mid-Cap 400 Growth ETF (IJK) and the Vanguard Mid-Cap Growth ETF (VOT) track a similar index. While iShares S&P Mid-Cap 400 Growth ETF has $9.88 billion in assets, Vanguard Mid-Cap Growth ETF has $15.40 billion. IJK has an expense ratio of 0.17% and VOT charges 0.07%.Bottom-LineRetail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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 Growth ETF (IWP): ETF Research Reports Monolithic Power Systems, Inc. (MPWR): Free Stock Analysis Report The Trade Desk (TTD): Free Stock Analysis Report Vanguard Mid-Cap Growth ETF (VOT): ETF Research Reports iShares S&P Mid-Cap 400 Growth ETF (IJK): 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