IWF: Growth Stocks Are Fairly Valued

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  • IWF invests in accord with the Russell 1000 Growth Index.
  • The index-based approach means that IWF seeks to own roughly the top half of the primary Russell 1000 Index's constituents in terms of earnings growth potential.
  • This filter is not discerning; it offers possibly greater diversification relative to other popular tech funds, but has historically under-performed, and still has high concentration among the top 10 holdings.
  • While IWF will probably do well over the long haul, it does not seem to present investors with a meaningful or attractive solution to tech investing, and therefore I would remain neutral unless or until a valuation gap were to present itself.

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Hiroshi Watanabe/DigitalVision via Getty Images

iShares Russell 1000 Growth ETF (NYSEARCA:NYSEARCA:IWF) is an exchange-traded fund that seeks to provide investors with exposure to companies with above-average earnings growth potential. The benchmark index is the Russell 1000 Growth

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Providing commentary and analysis, principally focused on global macro, foreign exchange, and equities as an asset class. Primary interests include equity investing from an international perspective, and FX fair values.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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