The iShares Core S&P U.S. Growth ETF (IUSG) made its debut on 07/24/2000, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Blackrock, and has been able to amass over $26.77 billion, which makes it the largest ETF in the Style Box - All Cap Growth. IUSG, before fees and expenses, seeks to match the performance of the S&P 900 Growth Index.
The S&P 900 Growth Index measures the performance of the large and mid-capitalization growth sector of the U.S. equity market.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.04% for this ETF, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 0.53%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 39.1% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Telecom and Consumer Discretionary round out the top three.
Taking into account individual holdings, Nvidia Corp (NVDA) accounts for about 13.04% of the fund's total assets, followed by Apple Inc (AAPL) and Alphabet Inc Class A (GOOGL).
IUSG's top 10 holdings account for about 53.8% of its total assets under management.
Performance and Risk
Year-to-date, the iShares Core S&P U.S. Growth ETF has added roughly 1.69% so far, and was up about 23.88% over the last 12 months (as of 01/13/2026). IUSG has traded between $113.67 $171.97 in this past 52-week period.
The ETF has a beta of 1.13 and standard deviation of 17.95% for the trailing three-year period, making it a medium risk choice in the space. With about 468 holdings, it effectively diversifies company-specific risk .
Alternatives
iShares Core S&P U.S. Growth ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
American Century U.S. Quality Growth ETF (QGRO) tracks AMERICAN CENTURY U.S. QUALITY GROWTH IND and the iShares Morningstar Growth ETF (ILCG) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID. American Century U.S. Quality Growth ETF has $2.29 billion in assets, iShares Morningstar Growth ETF has $2.99 billion. QGRO has an expense ratio of 0.29% and ILCG changes 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares Core S&P U.S. Growth ETF (IUSG): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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