ISCG Profile
The iShares Morningstar Small-Cap Growth ETF is designed to provide investors with exposure to small-cap companies that demonstrate strong growth potential. The fund will invest at least 80% of its assets in the securities that make up its underlying index, as well as in other investments with similar economic characteristics. This approach ensures that the funds performance closely aligns with its benchmark, which focuses on identifying small-cap stocks with significant growth attributes.
The underlying index is a benchmark that tracks the performance of small-capitalization companies characterized by above-average growth prospects. Morningstar, Inc.s proprietary index methodology evaluates companies based on various growth metrics, including revenue growth, earnings growth, and other indicators of financial performance. By focusing on these growth-oriented metrics, the index aims to capture the potential of emerging companies that are expected to expand at a faster rate compared to their peers.
The ETFs investment strategy is centered on small-cap stocks, which are generally companies with market capitalizations smaller than those of larger, established firms. These smaller companies often have higher growth potential but may also come with increased volatility and risk. The funds focus on growth characteristics means it targets firms with innovative products, expanding markets, and strong competitive positions, positioning investors to benefit from high-growth opportunities in the small-cap sector.
Managed by BlackRock, the iShares Morningstar Small-Cap Growth ETF leverages the firms expertise in identifying high-growth investment opportunities. BlackRocks management team employs a rigorous selection process to ensure that the ETF aligns with the growth-focused strategy of its underlying index. For investors seeking to tap into the potential of small-cap growth stocks, this ETF offers a strategic option to gain exposure to dynamic companies poised for significant expansion, while also managing the inherent risks associated with smaller, rapidly growing businesses.
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