If you're interested in broad exposure to the Mid Cap Blend segment of the US equity market, look no further than the iShares Morningstar Mid-Cap ETF (IMCB), a passively managed exchange traded fund launched on June 28, 2004.
The fund is sponsored by Blackrock. It has amassed assets over $1.48 billion, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Mid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. These types of companies, then, have a good balance of stability and growth potential.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.34%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector -- about 19.7% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Newmont (NEM) accounts for about 0.85% of total assets, followed by Crh Public Limited Plc (CRH) and Pnc Financial Services Group Inc (PNC).
The top 10 holdings account for about 6.37% of total assets under management.
Performance and Risk
IMCB seeks to match the performance of the MORNINGSTAR US MID CAP INDEX before fees and expenses. The Morningstar US Mid Cap Index comprises of mid-capitalization U.S. equities.
The ETF has gained about 5.44% so far this year and is up about 11.35% in the last one year (as of 02/09/2026). In the past 52-week period, it has traded between $65.41 and $87.23.
The ETF has a beta of 1.02 and standard deviation of 15.19% for the trailing three-year period. With about 406 holdings, it effectively diversifies company-specific risk.
Alternatives
iShares Morningstar Mid-Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IMCB is a reasonable option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $94.67 billion in assets, iShares Core S&P Mid-Cap ETF has $111.76 billion. VO has an expense ratio of 0.03% and IJH charges 0.05%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
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 Morningstar Mid-Cap ETF (IMCB): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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