iShares Russell 1000 Growth ETF

IWF

Market cap $122B

Fidelity Enhanced Large Cap Growth ETF (FELG) is positioned to outperform passive peers like IWF amid a broadening AI ecosystem as OpenAI strikes more deals. FELG's active management, dynamic stock selection, and higher portfolio turnover enable it to capture emerging AI-driven opportunities beyond the Magnificent 7. FELG trades at a lower P/E than IWF, justifying a moderate price target of $43.70, but carries higher concentration risk and volatility.

The S&P 500 has delivered stellar gains, but the SPY isn't the only choice. Many other exchange-traded funds are racing ahead, often ahead of the SPY. These two are worth looking into if you want to outperform the SPY.

Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the iShares Russell 1000 Growth ETF (IWF) is a passively managed exchange traded fund launched on May 22, 2000.

Rate cut bets, record highs and strong earnings power growth ETFs like VUG, IWF, IVW, SPYG and IUSG into the spotlight.

I upgrade IWF to Buy, as robust tech earnings, rate cut prospects, and solid GDP growth fuel outperformance, versus broader indices. Mega-cap tech stocks, especially in AI, are driving S&P 500 earnings surprises and underpin IWF's strong price momentum and low risk profile. IWF's diversified portfolio, low expense ratio, and superior liquidity make it an attractive vehicle for growth exposure amid easing credit conditions.

I maintain a hold rating on iShares Russell 1000 Growth ETF due to its premium valuation and weak seasonal trends through Q3. US large-cap growth stocks, especially Mag 7 names, show weak relative strength, while SMID caps and international shares outperform. IWF's technicals are mixed: bearish RSI divergence and September volatility risks, but strong long-term trend and solid support levels.

Value ETFs witness a surge as tech falters, with SPVU, RPV, RZV, RFV and GVLU gaining on rate cut bets and rotation into defensive sectors.

The stock market rally from the April-May lows has been led by growth stocks and as the rally progressed, the focus was on the MAGA 7 stocks. Their loss of 1$ trillion in value on Thursday, April 3rd, in reaction to the Trump tariff plans, startled the markets.

If you've been an investor for a while, then you already know growth stocks can be rewarding, but picking and monitoring them can also be a lot of work. Most growth industries evolve quickly and perpetually.

After a “weak” July for active large-cap equity mutual funds, a majority are underperforming their benchmarks this year, according to BofA Global Research.