ISCG - IMCG: We Think Large-Cap Growth Is Better
2024-06-06 21:18:25 ET
Summary
- iShares Morningstar Mid-Cap Growth ETF has outperformed other mid-cap growth funds but underperformed large-cap growth funds due to lower exposure to technology stocks.
- IMCG has yet to reach its record high from late 2021, unlike the S&P 500 index.
- The rise of passive investing, which favors large-cap stocks, will likely continue to impact IMCG's performance.
ETF Overview
iShares Morningstar Mid-Cap Growth ETF ( IMCG ) has a portfolio of U.S. mid-cap growth stocks. The fund has outperformed other mid-cap growth funds but underperformed other large-cap growth funds. This underperformance was due to its lower exposure to technology stocks. Looking forward, the fund will likely continue to underperform its large-cap growth peers not only due to its lower exposure to technology stocks, but also due to the rise of passive investing which tend to favor large-cap stocks. Hence, we think investors seeking higher total returns should pick large-cap growth funds instead....
IMCG: We Think Large-Cap Growth Is Better