ILCG Profile
The iShares Morningstar Growth ETF is designed to provide investors with exposure to a diverse portfolio of large and mid-cap U.S. companies that demonstrate strong growth characteristics. The fund primarily seeks to track the performance of its underlying index, the Morningstar U.S. Large-Mid Cap Growth Index, which focuses on companies that exhibit above-average growth potential. These companies are typically characterized by robust earnings, revenue growth, and strong market positioning, making the ETF a strategic choice for growth-oriented investors.
The fund commits to investing at least 80% of its assets in the component securities of its underlying index, ensuring that it closely mirrors the performance of the growth-oriented companies represented in the index. Additionally, the fund may invest in securities that possess economic characteristics substantially identical to those of the indexs components. This approach allows the fund to maintain a high degree of fidelity to its benchmark while also providing some flexibility in its investment strategy.
As a non-diversified fund, the iShares Morningstar Growth ETF may hold a more concentrated portfolio compared to diversified funds, potentially increasing the impact of individual stock performance on the fund's overall returns. This concentration reflects the ETFs focus on capturing the growth potential of a select group of companies that are leaders in their respective industries. The fund also has the capacity to engage in futures, options, and swap contracts, along with holding cash and cash equivalents, to manage risk and optimize returns.
Managed by iShares, one of the most prominent ETF providers globally, the iShares Morningstar Growth ETF offers investors a targeted approach to growth investing. By focusing on large and mid-cap companies with proven growth trajectories, the fund aims to deliver long-term capital appreciation. This makes it an attractive option for investors seeking to enhance their portfolios with exposure to companies that are expected to outpace the broader market in terms of growth.
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