IWY: Superior Growth ETF, But Lagging The Nasdaq 100

seekingalpha11-04

iShares Russell Top 200 Growth ETF holds about 100 stocks of very large companies with growth characteristics.IWY is overweight in information technology, with a focus on the semiconductors and ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2480375938?lang=en_US&edition=fundamental","thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/123203044/image_123203044.jpg","is_english":true,"pubTime":"2024-11-04 16:17","share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","id":"2480375938","market":"sg","top_or_hot":-1,"title":"IWY: Superior Growth ETF, But Lagging The Nasdaq 100","media":"seekingalpha","content":"<div>\n<p>iShares Russell Top 200 Growth ETF holds about 100 stocks of very large companies with growth characteristics.IWY is overweight in information technology, with a focus on the semiconductors and ...</p>\n\n<a href=\"https://seekingalpha.com/article/4732649-iwy-superior-growth-etf-but-lagging-the-nasdaq-100\">Source Link</a>\n\n</div>\n","source":"seekingalpha","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: Superior Growth ETF, But Lagging The Nasdaq 100</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIWY: Superior Growth ETF, But Lagging The Nasdaq 100\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-04 16:17 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4732649-iwy-superior-growth-etf-but-lagging-the-nasdaq-100><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>iShares Russell Top 200 Growth ETF holds about 100 stocks of very large companies with growth characteristics.IWY is overweight in information technology, with a focus on the semiconductors and ...</p>\n\n<a href=\"https://seekingalpha.com/article/4732649-iwy-superior-growth-etf-but-lagging-the-nasdaq-100\">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":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://seekingalpha.com/article/4732649-iwy-superior-growth-etf-but-lagging-the-nasdaq-100","article_id":"2480375938","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/123203044/image_123203044.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2480375938","pubTimestamp":1730708255,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"iShares Russell Top 200 Growth ETF holds about 100 stocks of very large companies with growth characteristics.IWY is overweight in information technology, with a focus on the semiconductors and softwa","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","IWY":"iShares Russell Top 200 Growth I","BK4585":"ETF&股票定投概念"},"translate_title":"IWY：卓越增长ETF，但落后于纳斯达克100指数","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"IWY":0.9},"content_text":"iShares Russell Top 200 Growth ETF holds about 100 stocks of very large companies with growth characteristics.IWY is overweight in information technology, with a focus on the semiconductors and software industries.Since its inception in 2009, IWY has outperformed its parent index and the most popular ETFs implementing rules-based growth methodologies.However, it has been lagging QQQ, which stays the favorite ETF of growth investors for good reasons.dinn/E+ via Getty Images  IWY strategy iShares Russell Top 200 Growth ETF (NYSEARCA:IWY) was launched on 9/22/2009 and tracks the Russell Top 200 Growth Index. It has 106 holdings, a 30-day SEC yield of 0.42%, and an expense ratio of 0.20%. As described in the prospectus by iShares, the underlying index selects companies with \"higher price-to-book ratios, higher sales-per-share historical growth and higher forecasted growth relative to all securities included in the Russell Top 200 Index\". The portfolio turnover rate was 11% in the most recent fiscal year. This article will use as a benchmark the parent index, represented by iShares Russell Top 200 ETF (IWL). Portfolio The portfolio is overweight in mega-cap companies (about 74% of asset value) and in the information technology sector (51.4%). Within technology, the heaviest industries are software and semiconductors (both close to 19%). IWY also has significant exposure in communication services (14.1%) and consumer discretionary (14%). Other sectors are below 7%. Compared to its parent index, IWY overweights its top three sectors and underweights the rest, almost ignoring materials, real estate, utilities and energy. IWY sector breakdown, % of asset value (Chart: author; data: iShares) The portfolio is very concentrated: the top 10 issuers, listed in the next table, weigh 68.3% of asset value. The top 3 companies (Apple, NVIDIA, Microsoft) weigh more than 12% individually and 38% together, while in the benchmark IWL, the same top 3 names weigh \"only\" 23%. The two share series of Alphabet, listed by the fund as distinct holdings, have been aggregated in this table.   Ticker Name Weight % Sector   AAPL APPLE  13.04 Information Technology   NVDA NVIDIA  12.75 Information Technology   MSFT MICROSOFT  12.28 Information Technology   GOOGL,GOOG ALPHABET  7.47 Communication   AMZN AMAZON  7.41 Consumer Discretionary   META META PLATFORMS  5.00 Communication   AVGO BROADCOM  3.09 Information Technology   TSLA TESLA  2.79 Consumer Discretionary   LLY ELI LILLY 2.64 Health Care   V VISA  1.84 Financials   Click to enlarge Fundamentals In accordance with the strategy description, IWY is significantly more expensive than IWL based on valuation ratios and has better growth rates, as reported below.     IWY IWL   P/E TTM 36.98 28.79   Price/Book 12.79 5.38   Price/Sales 7.15 3.74   Price/Cash Flow 27.07 20.45   Earnings growth 26.11% 23.43%   Sales growth % 12.48% 9.36%   Cash flow growth % 15.20% 8.00%   Click to enlarge Data source: Fidelity Performance IWY has outperformed IWL by 2.7% in annualized return since 10/1/2009, with a similar maximum drawdown and a slightly higher historical volatility (measured as standard deviation of monthly returns in the next table).     Total Return Annual Return Drawdown Sharpe ratio Volatility   IWY 978.02% 17.06% -32.68% 0.99 16.05%   IWL 656.32% 14.34% -32.71% 0.93 14.41%   Click to enlarge IWY is 5.1% ahead of the benchmark over the last 12 months. In this time frame, it shows relatively deeper drawdowns, pointing to higher risk: IWY vs IWL, 12-month return (Seeking Alpha) IWY vs. Competitors The next table compares characteristics of IWY and four other popular growth ETFs focused on large companies:  Invesco QQQ Trust ETF (QQQ) Schwab U.S. Large-Cap Growth ETF (SCHG) Vanguard Growth ETF (VUG) SPDR Portfolio S&P 500 Growth ETF (SPYG)      IWY QQQ SCHG VUG SPYG   Inception 9/22/2009 3/10/1999 12/11/2009 1/26/2004 9/25/2000   Expense Ratio 0.20% 0.20% 0.04% 0.04% 0.04%   AUM $12.09B $294.67B $33.49B $261.40B $30.73B   Avg Daily $ Volume $72.81M $16.56B $123.90M $395.64M $159.39M   Holdings 106 102 231 185 234   Top 10 67% 50.94% 59.91% 57.50% 60.67%   Turnover 11.00% 22.08% 9.00% 5.00% 32.00%   Click to enlarge IWY has the highest fee (tie with QQQ) and the most concentrated portfolio. The next chart plots total returns since 10/1/2009. IWY beats its peers, except the Nasdaq 100 ETF QQQ. IWY vs competitors, since 10/1/2009 (Seeking Alpha) However, IWY is the best performer over the last 3 years. IWY vs competitors, 3-year return (Seeking Alpha) Takeaway  iShares Russell Top 200 Growth ETF holds about 100 stocks of very large companies with growth characteristics. The IWY portfolio is overweight in technology and very concentrated in its top holdings. Since its inception in 2009, IWY has outperformed its parent index and the most popular ETFs implementing rules-based growth methodologies. However, it has been lagging QQQ, which stays the favorite ETF of growth investors for good reasons.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"analysis","news_rank":0,"symbols":[],"gpt_button":0},"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":"4.29.2","shortVersion":"4.29.2","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/2480375938"}