IShares Russell 2000 Growth ETF IWO is a well-diversified portfolio with a sizable cost advantage relative to its actively managed peers. However, it starts at a disadvantage to its closest index peers because its parent index will likely suffer from a larger rebalancing drag, and there are cheaper index alternatives. So, it earns a Morningstar Analyst Rating of Neutral.
Will IWO outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable IWO’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the IWO management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of IWO’s parent organization’s priorities and whether they’re in line with investors’ interests.