ETF Talk: This Fund Offers a Middle Ground for Growth

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker, financial journalist, and money manager.
Total Returns

While large-cap stocks are often seen as more consistent and safer, and small-cap stocks have the best potential for growth if an investor chooses the right one, a middle ground can allow investors to use both of these elements in their portfolio at once.


The iShares Morningstar Mid-Cap Growth ETF (IMCG) is one investment that plays into such a strategy. This fund focuses on domestic mid-cap stocks whose earnings are expected to grow at an above-average rate relative to the market.

Growth stocks typically focus on returns over dividends and possess the power to propel top- and bottom-line revenues. This fund holds $1.4 billion in assets and has strong liquidity characteristics.

IMCG holds upwards of 300 stocks in total. Its 0.83% yield is not surprising given its strategy, but easily wipes out the low 0.06% expense ratio and leaves investors with some cash.


During the last 12 months, the fund’s performance is approximately in line with the S&P, posting a loss of 6.6%. However, it has been trending upward for most of the current year.

Chart courtesy of

Top holdings include MSCI Inc. (MSCI), 1.10%; Block Inc. (SQ), 1.01%; Arthur J. Gallagher & Co. (AJG), 1.01%; IDEXX Laboratories (IDXX), 1.01%; and Ross Stories Inc. (ROST), 1.00%. As these figures demonstrate, the distribution of fund holdings is relatively even, as no one or handful of companies compose an outsized proportion of IMCG’s holdings. The top ten holdings make up only 9.64% of assets.

Exclusive  Three Technology Investments to Buy Despite New White House Policy on AI

The fund’s greatest sector weighting lies in technology at 24%, followed by industrials, 19%, and health care, 12%. Traditionally stable sectors such as utilities and energy are the least prevalent, which makes sense given the fund’s tilt towards growth stocks.

For investors looking to tap into mid-cap growth stocks, judging by its impressive assets under management, iShares Morningstar Mid-Cap Growth ETF (IMCG) is a popular option.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

share on:

Like This Article?
Now Get Jim's FREE Special Report:
The Top 11 Dividend ETFs to
Buy Right Now

Get up to 5X the yields of traditional income plays.

Get Access to the Report, 100% FREE

share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle


DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops