iShares S&P Mid-Cap 400 Growth ETF (IJK)

Overview

The iShares S&P Mid-Cap 400 Growth ETF (IJK) seeks to track the investment results of an index composed of mid-capitalization U.S. equities that exhibit growth characteristics. It primarily focuses on mid-cap growth stocks and aims for long-term capital appreciation.

Reputation and Reliability

BlackRock is a highly reputable and reliable global investment management firm with a long track record of managing ETFs and other investment products.

Management Expertise

BlackRock has a team of experienced portfolio managers and analysts dedicated to managing its ETFs, leveraging significant resources and expertise.

Goal

To track the investment results of the S&P MidCap 400 Growth Index, a benchmark for U.S. mid-cap growth stocks.

Investment Approach and Strategy

Strategy: This ETF aims to replicate the performance of the S&P MidCap 400 Growth Index through passive investment in its constituent stocks.

Composition The ETF primarily holds stocks of mid-sized U.S. companies exhibiting growth characteristics, focusing on sectors like technology, healthcare, and consumer discretionary.

Market Share: IJK's market share within the mid-cap growth ETF segment is substantial, but varies depending on the specific comparison group and time period.

Total Net Assets (AUM): 1150000000

Key Competitors

• Vanguard Mid-Cap Growth ETF (VOT)
• Schwab U.S. Mid-Cap Growth ETF (SCHG)
• SPDR S&P 400 MidCap Growth ETF (MDYG)

Competitive Landscape

The mid-cap growth ETF market is competitive, with multiple providers offering similar strategies. IJK benefits from BlackRock's brand recognition and established track record. However, competitors like VOT often have lower expense ratios, making them attractive to cost-conscious investors. The primary disadvantage of IJK compared to competitors is often its higher expense ratio, while advantages include potentially greater liquidity due to higher AUM and trading volume, along with BlackRock's brand recognition.

Historical Performance: Historical performance varies with market cycles; refer to fund fact sheet for updated values. 10 year average annual return is between 10%-13%.

Benchmark Comparison: The ETF's performance closely tracks the S&P MidCap 400 Growth Index. Minor differences may arise due to expenses and tracking error.

Expense Ratio: 0.24

Average Trading Volume

IJK exhibits good liquidity, as it typically maintains a robust average daily trading volume, facilitating easy entry and exit for investors.

Bid-Ask Spread

The bid-ask spread for IJK is generally tight, reflecting its strong liquidity and minimizing trading costs.

Market Environment Factors

IJK's performance is influenced by overall economic growth, interest rate changes, and sector-specific trends within the mid-cap market.

Growth Trajectory

IJK's growth is tied to the performance of mid-cap growth stocks, experiencing fluctuations based on market cycles and investor sentiment. Changes to strategy are infrequent, as it is designed to track a specific index, but holdings change along with the index.

Competitive Edge

IJK's advantages stem from BlackRock's extensive resources, brand recognition, and a well-established track record in managing ETFs. Its investment strategy aligns with the S&P MidCap 400 Growth Index and offers investors exposure to mid-cap growth stocks. BlackRock's global reach and vast distribution network also contribute to the ETF's market presence, providing the competitive edge in the market. The ETF's low tracking error ensures consistent alignment with the index.

Volatility

The ETF's volatility is comparable to that of the S&P MidCap 400 Growth Index, which is generally higher than large-cap indices but lower than small-cap indices.

Market Risk

The ETF is exposed to market risk associated with equity investments, including economic downturns, sector-specific risks, and company-specific factors impacting the performance of its holdings.

Ideal Investor Profile

IJK is suited for investors seeking long-term capital appreciation through exposure to mid-cap growth stocks. This includes individuals who are comfortable with moderate to high volatility and have a long-term investment horizon.

Market Risk

IJK is best suited for long-term investors and passive index followers who are looking for diversified exposure to the mid-cap growth segment.

The iShares S&P Mid-Cap 400 Growth ETF (IJK) offers investors access to the mid-cap growth segment of the U.S. equity market by tracking the S&P MidCap 400 Growth Index. Managed by BlackRock, the ETF benefits from a reputable issuer and a well-established investment strategy. While it faces competition from other mid-cap growth ETFs, IJK offers a cost-effective and liquid means of gaining exposure to this market segment. Its suitability depends on the investor's risk tolerance and investment horizon, making it most appropriate for long-term investors seeking capital appreciation.

Data Sources:

• iShares.com
• Morningstar.com
• etf.com

Disclaimers:

This information is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and a thorough understanding of the risks involved. Market share data is approximate and based on available information.