Should iShares S&P Mid-Cap 400 Growth ETF (IJK) Be on Your Investing Radar?

Looking for broad exposure to the Mid Cap Growth segment of the US equity market? You should consider the iShares S&P Mid-Cap 400 Growth ETF (IJK), a passively managed exchange traded fund launched on 07/24/2000.The fund is sponsored by Blackrock. It has amassed assets over $9.61 billion, making it one of the larger ETFs attempting to match the Mid Cap Growth segment of the US equity market.Why Mid Cap GrowthMid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. These types of companies, then, have a good balance of stability and growth potential.Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Also, growth stocks are a type of equity that carries more risk compared to others. 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.CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.Annual operating expenses for this ETF are 0.17%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.76%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. 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 26% of the portfolio. Consumer Discretionary and Financials round out the top three.Looking at individual holdings, Williams Sonoma Inc (WSM) accounts for about 1.61% of total assets, followed by Emcor Group Inc (EME) and Interactive Brokers Group Inc Clas (IBKR).The top 10 holdings account for about 9.24% of total assets under management.Performance and RiskIJK seeks to match the performance of the S&P MidCap 400 Growth Index before fees and expenses. The S&P MidCap 400 Growth Index measures the performance of the mid-capitalization growth sector of the U.S. equity market.The ETF has added about 3.41% so far this year and is up about 17% in the last one year (as of 02/10/2025). In the past 52-week period, it has traded between $81.45 and $99.46.The ETF has a beta of 1.10 and standard deviation of 20.69% for the trailing three-year period, making it a medium risk choice in the space. With about 244 holdings, it effectively diversifies company-specific risk.AlternativesIShares S&P Mid-Cap 400 Growth ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IJK 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 Vanguard Mid-Cap Growth ETF (VOT) and the iShares Russell Mid-Cap Growth ETF (IWP) track a similar index. While Vanguard Mid-Cap Growth ETF has $16.52 billion in assets, iShares Russell Mid-Cap Growth ETF has $18.85 billion. VOT has an expense ratio of 0.07% and IWP charges 0.23%.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 S&P Mid-Cap 400 Growth ETF (IJK): ETF Research Reports Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report EMCOR Group, Inc. (EME): Free Stock Analysis Report Williams-Sonoma, Inc. (WSM): Free Stock Analysis Report iShares Russell Mid-Cap Growth ETF (IWP): ETF Research Reports Vanguard Mid-Cap Growth ETF (VOT): 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