IJT - IJT: This Growth Strategy Has Vulnerabilities Worth Addressing
2024-05-25 00:01:56 ET
Summary
- The core idea of IJT is to offer exposure to the S&P 600 constituents with growth and momentum characteristics.
- This is not a perfectionist strategy, so undervalued SMID names might qualify as well.
- While having a substantial footprint in healthy EPS growth stories, IJT's portfolio nonetheless has issues on the growth front, with something to criticize about quality and value.
- Its past performance is overall nuanced, so I am skeptical about targeting growthier small- and mid-caps with this ETF.
The iShares S&P Small-Cap 600 Growth ETF ( IJT ) is a passively managed vehicle targeting a growthier portion of the U.S. small-cap universe. I have been covering this ETF since March 2023 , with a note presented back then having a slightly pessimistic tone, as my primary concern was related to the market narrative dominated by hawks, something that boded ill for the growth-chasing strategy....
IJT: This Growth Strategy Has Vulnerabilities Worth Addressing