IWY Vs. SPYG, And Other Considerations For Prospective Owners

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shutter_m Introduction As the name suggests, the iShares Russell Top 200 Growth ETF (NYSEARCA:IWY) is a financial product that seeks to exposure coverage towards the largest growth stocks from the ...

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SPYG, And Other Considerations For Prospective Owners","media":"seekingalpha","content":"<div>\n<p>shutter_m Introduction As the name suggests, the iShares Russell Top 200 Growth ETF (NYSEARCA:IWY) is a financial product that seeks to exposure coverage towards the largest growth stocks from the ...</p>\n\n<a href=\"https://seekingalpha.com/article/4678418-iwy-vs-spyg-other-considerations-for-prospective-owners\">Source Link</a>\n\n</div>\n","source":"seekingalpha_fund","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>IWY Vs. 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SPYG, And Other Considerations For Prospective Owners\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-15 13:53 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4678418-iwy-vs-spyg-other-considerations-for-prospective-owners><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>shutter_m Introduction As the name suggests, the iShares Russell Top 200 Growth ETF (NYSEARCA:IWY) is a financial product that seeks to exposure coverage towards the largest growth stocks from the ...</p>\n\n<a href=\"https://seekingalpha.com/article/4678418-iwy-vs-spyg-other-considerations-for-prospective-owners\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4579","symbol_name":"人工智能","start_time":0,"source_url":"https://seekingalpha.com/article/4678418-iwy-vs-spyg-other-considerations-for-prospective-owners","article_id":"2419916466","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/613537246/image_613537246.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2419916466","pubTimestamp":1710482024,"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"shutter_m Introduction As the name suggests, the iShares Russell Top 200 Growth ETF (NYSEARCA:IWY) is a financial product that seeks to exposure coverage towards the largest growth stocks from the Rus","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4579":"人工智能","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","BK4550":"红杉资本持仓","LU0097036916.USD":"贝莱德美国增长A2 USD","BK4588":"碎股","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","BK4141":"半导体产品","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU0511384066.AUD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (AUDHDG) ACC","BK4503":"景林资产持仓","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","LU0672654240.SGD":"FTIF - Franklin US Opportunities A Acc SGD-H1","LU0444971666.USD":"天利全球科技基金","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","BK4551":"寇图资本持仓","LU0289961442.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (SGD) ACC","LU0276348264.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN\"AUP\" (USD) INC","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","BK4581":"高盛持仓","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","BK4529":"IDC概念","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","BK4592":"伊斯兰概念","LU0079474960.USD":"联博美国增长基金A","SPYG":"SPDR Portfolio S&P 500 Growth ETF","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","BK4543":"AI","BK4567":"ESG概念","LU0080751232.USD":"富达环球多元动力基金A","LU0056508442.USD":"贝莱德世界科技基金A2","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","BK4585":"ETF&股票定投概念","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","BK4587":"ChatGPT概念","LU0109392836.USD":"富兰克林科技股A","NVDA":"英伟达","IWY":"iShares Russell Top 200 Growth I","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","BK4527":"明星科技股"},"translate_title":"IWY对SPYG，以及对潜在所有者的其他考虑","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"IWY":1,"SPYG":1,"NVDA":1},"content_text":"shutter_m Introduction As the name suggests, the iShares Russell Top 200 Growth ETF (NYSEARCA:IWY) is a financial product that seeks to exposure coverage towards the largest growth stocks from the Russell 1000 universe. To better understand IWY's characteristics, we thought it would be apt to compare it to another competing large-cap growth ETF - the SPDR Portfolio S&P 500 Growth ETF (SPYG). IWY vs. SPYG SPYG is the older product of the two (it came to the bourses 9 years earlier than IWY which made its debut in September 2009), and during its longer history, it has managed to accumulate AUM that is almost 2.5x that of our focus product. Needless to say, SPYG is also larger in scope, as its base universe consists of 500 stocks, whereas IWY's base universe is 200. As things stand, IWY only covers 115 stocks, whereas SPYG covers close to 2x of that figure at 228. SPYG's popularity will likely also be driven by its superior cost efficiency (its expense ratio of 0.04% is only a fifth of what IWY charges). It also helps that SPYG has a more resplendent income sub-plot. Over the last 3 years, its dividends have grown at an impressive pace of 29%, around 1700bps higher than the IWY during the same period. As a result, note that SPYG's current yield of over 1% is on par with its historical average, and the gap with IWY has only widened (currently stands at over 40bps). Note also that IWY's yield is a good 20bps lower than what it normally yields. YCharts Whilst both products can be picked up at near-identical valuations of 28-29x (note that the top 10 stocks of both products are identical, although with slightly different weights), it certainly looks like things look a lot more overextended in the IWY counter. The image below highlights how IWY's current relative strength ratio is a good 20% higher than the long-term mean. YCharts While both products seek to cover large-cap growth stocks from the US, the screeners they employ to build a portfolio are quite different. We have a slight preference for IWY's screening combination as it also incorporates a forward-looking screener and considers a much wider reference time frame, quite unlike SPYG which falls short on both fronts/ So to get down to the specifics, IWY considers the 5-year sales per share track record, while SPYG only sticks to a 3-year track record. IWY also incorporates a tenuous balance sheet linkage by looking at the price-to-book value ratio, whereas SPYG doesn't go there. Rather, SPYG also incorporates a momentum screener where it looks at the 12-month percentage price change (we do have some concerns about getting too hung up about momentum plays over 12 months, as this could leave you holding a lot of overextended stocks at peak levels). Note that IWY does not consider momentum when constructing its portfolio. Finally, both products look at earnings, but SPYG looks at the historical track record of adjusted EPS growth over price, whilst IWY looks at I/B/E/S earnings forecasts for the next two years. The effects of IWY's more well-rounded screening mechanism can be gleaned from not just the absolute return profile, but the risk-adjusted return track record as well. Since it was incorporated, note that IWY has outperformed its larger peer by 1.27x. YCharts It also helps that IWY's more giant-cap-oriented portfolio (giant-caps account for 73% of the portfolio, as opposed to 67% for SPYG) has a slightly lower rolling risk profile than SPYG. YCharts Note that for the level of total risk incorporated, IWY does a better job in its efforts to generate returns over the risk-free rate (as measured by the 10-year and 3-year Sharpe ratios). YCharts Even if you want to look at how these products have fared during periods of downside deviations, we have a clear winner, with IWY throwing up much superior Sortino ratios, regardless of the time frame in question. YCharts If one wants to go by history alone, the broad takeaway here is that since both products have the same top 10 with large aggregate weights of 57-60%, it makes more sense to focus on a narrower pool of the biggest large-caps. The lagging risk-adjusted performance of SPYG's broader pool of large caps is a testament to that thesis. Closing Thoughts - Is IWY A Good Buy Now? Whilst IWY has done well against SPYG so far, we are not convinced it would be too wise to load up on this product now. Firstly, at heightened P/E valuations of 28x, one does wonder if you'll get a great deal of upside. For this product to see further re-rating, you're going to need its top 10 stocks (the top 10 stocks alone have a weight of 60%) to justify things by delivering even better earnings growth than what we've seen previously, and that certainly doesn't appear to be on the cards, based on consensus estimates. Over the last 5 years, IWY's top 10 have delivered weighted average earnings growth of 20%, but based on Seeking Alpha estimates, you're actually looking at a slightly lower cadence of 19% over the next 3-5 years. Seeking Alpha Then, it also doesn't help that IWY is also heavily titled to the tech sector alone, which accounts for 50% of all holdings and where you have signs of undue euphoria. According to data from FactSet, the valuations of large-cap tech relative to its historical average are the widest among all 11 sectors. The current differential of 44% is almost twice as much as the next priciest sector - the materials sector. FactSet Investors should also note that when Q1 results come out from next month, it won't necessarily be the tech sector that will provide the most exciting growth runway. As things stand, the expected growth for large-cap tech in Q1 lags that of Utilities, and Communication services. Crucially, this won't be broad-based growth, but rather a hefty chunk of that earnings growth is likely to be driven by one stock alone - Nvidia (NVDA). Take NVDA out of the equation, and the earnings growth for tech drops off by close to 1300bps! FactSet When your dominant sector exposure looks rather unidimensional under the surface (at least from an earnings standpoint), it's also not ideal that IWY's price is on the cusp of hitting the boundary of its ascending channel, which has been in play for close to two years now. You ideally want to be getting into IWY when the price is perched closer to the lower boundary, not where it is now, more so when the RSI too is in the overbought stance. Investing Finally, investors may also want to consider that relative to the large-cap value stocks of the Russell 200, IWY's portfolio looks very overextended with the relative strength ratio currently perched at record highs and a good 70% above its long-term mean. YCharts  All in all, we don't feel IWY would make a good buy now.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2419916466"}