Quick Read – The iShares S&P 500 Growth ETF (IVW) charges 0.18% annually—double to four times more than cheaper competitors offering identical large-cap growth exposure. – IVW is a concentrated mega-cap tech bet (14.6% in NVIDIA alone) delivering 40% one-year returns, but SPYG…
d VOOG match those gains at 0.04% and 0.08% fees respectively. – The analyst who called NVIDIA in 2010 just named his top 10 stocks and iShares S&P 500 Growth Fund wasn’t one of them. Get them here FREE
The iShares S&P 500 Growth ETF (NYSEARCA:IVW) charges 0.18% a year to own a basket of large-cap growth stocks you can rent for a quarter of that price elsewhere. On a $200,000 position held for thirty years of compounding, that gap quietly hands BlackRock several thousand dollars in fees for exposure that is, holding-for-holding, almost identical to two cheaper funds. IVW is just an expensive way to own a portfolio you can buy cheaper elsewhere.
What the fund is actually selling IVW tracks the S&P 500 Growth Index, which screens the 500 large caps for sales growth, earnings change to price, and momentum, then weights them by market cap. Inception goes back to May 22, 2000, so this is one of the original style-box ETFs. The return engine is straightforward.