Should iShares Russell Mid-Cap ETF (IWR) Be on Your Investing Radar?

Core Insights - The iShares Russell Mid-Cap ETF (IWR) is a passively managed fund launched on July 17, 2001, with over $43.61 billion in assets, making it one of the largest ETFs in the Mid Cap Blend segment of the US equity market [1] Group 1: Investment Characteristics - Mid cap companies, with market capitalizations between $2 billion and $10 billion, offer a balance of stability and growth potential, generally exhibiting higher growth prospects and lower volatility compared to large and small cap companies [2] - The ETF has annual operating expenses of 0.19% and a 12-month trailing dividend yield of 1.29%, which is competitive within its peer group [3] Group 2: Sector Exposure and Holdings - The ETF's largest sector allocation is to Industrials, comprising approximately 18.4% of the portfolio, followed by Financials and Consumer Discretionary [4] - Royal Caribbean Group Ltd (RCL) represents about 0.68% of total assets, with the top 10 holdings accounting for approximately 5.46% of total assets under management [5] Group 3: Performance Metrics - IWR aims to match the performance of the Russell MidCap Index, having gained roughly 7.39% year-to-date and approximately 15.44% over the past year as of August 15, 2025 [6] - The ETF has a beta of 1.03 and a standard deviation of 17.91% over the trailing three-year period, indicating a medium risk profile with effective diversification across 824 holdings [7] Group 4: Alternatives - The iShares Russell Mid-Cap ETF holds a Zacks ETF Rank of 3 (Hold), suggesting it is a reasonable option for investors seeking exposure to the Mid Cap Blend market segment [8] - Alternatives include the Vanguard Mid-Cap ETF (VO) with $86.40 billion in assets and an expense ratio of 0.04%, and the iShares Core S&P Mid-Cap ETF (IJH) with $97.90 billion in assets and an expense ratio of 0.05% [9] Group 5: Conclusion - Passively managed ETFs like IWR are favored by both institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [10]