ILCG ETF

ILCG has a collection of mid-cap and large-cap growth stocks. This fund could keep doing better than the overall market, but it might not perform as well as other growth funds because it has more mid-cap stocks.

The Fed kicked off the new rate cycle era. Investors seeking to capitalize on this trend could invest in growth ETFs.

iShares Morningstar Growth ETF holds over 300 stocks with historical and forecasted growth characteristics. Like many growth funds, the ILCG ETF is overweight in technology and in a few mega-cap companies. ILCG has outperformed the S&P 500 since its inception in 2004 and shows attractive quality metrics.

ILCG which focuses on large-cap-and-mid-cap stocks with growth characteristics has outperformed the benchmark by 700bps over the past year. Notwithstanding the recent performance, we don't feel ILCG is as competent a growth ETF as VUG, the largest offering in this space. The relative strength and standalone charts suggest that this is an overbought theme, and valuations are not cheap either.

For investors seeking momentum, iShares Morningstar Growth ETF ILCG is probably on the radar. The fund just hit a 52-week high and is up 43% from its 52-week low of $50.37 per share.

iShares Morningstar Growth ETF tracks the Morningstar US Large-Mid Cap Broad Growth Index and offers targeted access to large-cap domestic growth stocks. ILCG holds significant holdings in prominent tech companies such as Apple, Microsoft, Amazon, Nvidia, and Tesla. The fund's portfolio is heavily skewed towards the Information Technology sector, with a low expense ratio of 0.04%, making it a cost-efficient option for growth stock exposure.

The blend of robust economic recovery, continued low-interest rates, AI frenzy and strong corporate earnings led to the outperformance in 1H and will likely continue to drive the second-half performance.