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Seeking Diversified Exposure to U.S. Mid-Caps?

The iShares Russell Mid-Cap ETF (IWR) offers investment exposure to mid-sized U.S. companies for those seeking long-term growth.

The Russell Mid-Cap Index is a commonly used benchmark for mutual funds and ETFs seeking to track the performance of mid-size companies in the U.S. – meaning those with a market capitalization of roughly $2 billion to $10 billion.

This mid-cap index is a majority subset of the Russell 1000 Index, which includes the 1,000 largest publicly traded companies in the U.S. By eliminating about 200 large-cap companies in the Russell 1000 Index, which have market caps greater than $10 billion, the Russell Mid-Cap Index is left with around 800 companies that represent the middle tier of American corporations, which include many long-established companies as well as recent start-ups that had growth surges strong enough for them to ascend into mid-cap territory.

Like most benchmark indexes, the Russell Mid-Cap Index is reconstituted every year to bring in new entries and eliminate those companies that have shrunk to a small-cap size or grown into large-caps. To minimize turnover triggered by rigid ranking cut-off points, the index allows currently listed companies to remain if their new by float-adjusted market caps fall with a 5% range around the limit set for removal.

Access a specific segment of the domestic stock market with the IWR ETF

Institutional investors seeking highly diversified, broad exposure to these mid-sized U.S. companies can use the iShares Russell Mid-Cap ETF (IWR). Since its inception in July 2001, this ETF has seeked to track the Russell Mid-Cap Index (in fact, it was formerly known as the iShares Russell Midcap Index Fund) and offered investors the ease of trading like a security, free of the extra requirements and delays that come with most mutual funds. IWR can tilt a portfolio toward long-term growth that many large investors wish to add to their portfolio – for diversification as well as other tactical and strategic purposes. The ETF uses securities lending to help offset fees and generate additional income.

IWR is one of three iShares ETFs that track a mid-cap Russell index. The other two are the iShares Russell Mid-Cap Growth ETF (IWP) and the iShares Russell Mid-Cap Value ETF (IWS). The former, IWP, seeks exposure to mid-cap U.S. companies whose earnings are expected to grow at an above-average rate relative to the market, while IWS seeks exposure to undervalued mid-cap stocks that can tilt a portfolio toward value. (Again, IWR focuses on long-term growth.)

While many of the constituent companies in IWR can change yearly, this ETF tends to tilt more toward equities at the larger end of the mid-cap pool than other comparable ETFs on the market, which could further lower potential volatility for conservative institutional investors. The companies at the top end of IWR’s inclusions are mostly well-known business with relatively stable market positions.

IWR spreads its top five sector exposures across Information Technology, Industrials, Financials, Consumer Discretionary, and Healthcare (see table below).

As of October 27, 2021, IWR had net assets of $30,473,354,868 and a 30-day average volume of $ 1,724,947.00 with 831 holdings.

See the charts below for more details about the iShares Russell Mid-Cap ETF (IWR). You can find more info on this ETF here.

iShares
There is no guarantee that securities lending will generate any level of income. Distributions paid out of the Fund’s net investment income, including income from securities lending, if any, are taxable to investors as ordinary income. There is no guarantee that there will be borrower demand for shares of ETFs, or that securities lending will generate any level of income. ETF share lending revenue is not an element of fund performance and share lending is not a service provided by iShares or BlackRock ETFs or BlackRock Fund Advisors, the funds' investment manager and an affiliate of BlackRock Investments LLC.

This material represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective.

Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and the general securities market. Diversification and asset allocation may not protect against market risk or loss of principal.

Past performance does not guarantee future results. For iShares ETF performance, please visit www.iShares.com or www.blackrock.com. The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Russell, nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with Russell.

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