The iShares Russell 1000 Growth ETF (IWF) selects mostly large-cap stocks from the Russell 1000 Index that show high-growth characteristics.
With $36.15 billion in total assets under management and average daily trading volume of $184.77 million, IWF is a massive fund with supreme liquidity.
In contrast to its sister fund, the iShares Russell 1000 Value ETF (IWD), which was featured in the previous ETF Talk, IWF is focused on stocks that have high potential for above-average growth relative to the market. But in the short term, they may not necessarily offer a “good value” or even be underpriced.
Growth stocks also may appeal to those who seek capital appreciation rather than dividend income. Indeed, companies focused on growth typically reinvest their earnings and pay either a small or no dividend.
IWF selects stocks based on rankings of three fundamental factors: price-to-book ratio, forecasts for medium-term growth and five-year historical sales growth. The rankings then are standardized and built into a final composite score with a growth variable factored in.