Should iShares Russell MidCap ETF (IWR) Be on Your Investing Radar?
Style Box ETF report for IWR
If you're interested in broad exposure to the Mid Cap Blend segment of the US equity market, look no further than the iShares Russell MidCap ETF (IWR), a passively managed exchange traded fund launched on 07/17/2001.
The fund is sponsored by Blackrock. It has amassed assets over $30.70 billion, making it one of the largest ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Mid 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. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
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 1.08%.
Sector Exposure and Top Holdings
Even 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 Information Technology sector--about 19.60% of the portfolio. Industrials and Consumer Discretionary round out the top three.
Looking at individual holdings, Dexcom Inc (DXCM) accounts for about 0.51% of total assets, followed by Idexx Laboratories Inc (IDXX) and Marvell Technology Inc (MRVL).
The top 10 holdings account for about 4.54% of total assets under management.
Performance and Risk
IWR 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 lost about -2.47% so far this year and was up about 15.47% in the last one year (as of 01/10/2022). In the past 52-week period, it has traded between $68.35 and $85.28.
The ETF has a beta of 1.10 and standard deviation of 24.34% for the trailing three-year period, making it a medium risk choice in the space. With about 834 holdings, it effectively diversifies company-specific risk.
IShares Russell MidCap 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 MidCap ETF (VO) and the iShares Core S&P MidCap ETF (IJH) track a similar index. While Vanguard MidCap ETF has $54.79 billion in assets, iShares Core S&P MidCap ETF has $67.30 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
While 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.
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iShares Russell MidCap ETF (IWR): ETF Research Reports
DexCom, Inc. (DXCM): Free Stock Analysis Report
Marvell Technology, Inc. (MRVL): Free Stock Analysis Report
IDEXX Laboratories, Inc. (IDXX): Free Stock Analysis Report
iShares Core S&P MidCap ETF (IJH): ETF Research Reports
Vanguard MidCap ETF (VO): ETF Research Reports
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