Is iShares core S&P US growth ETF (IUSG) a strong ETF right now?

The iShares Core S&P U.S. Growth ETF (IUSG - Free Report) 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?

The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.

A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.

But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.

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.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund sponsor and index

Managed by Blackrock, IUSG has amassed assets over $25.51 billion, making it the largest ETF in the Style Box - All Cap Growth. Before fees and expenses, this particular fund 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 and 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.

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 0.54%.

Sector exposure and top holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

For IUSG, it has heaviest allocation in the Information Technology sector --about 41.4% of the portfolio --while Telecom and Consumer Discretionary round out the top three.

When you look at individual holdings, Nvidia Corp (NVDA) accounts for about 13.72% of the fund's total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL).

IUSG's top 10 holdings account for about 52.07% of its total assets under management.

Performance and risk

Year-to-date, the iShares Core S&P U.S. Growth ETF has added roughly 19.37% so far, and was up about 20.03% over the last 12 months (as of 11/10/2025). IUSG has traded between $113.67 $171.97 in this past 52-week period.

The ETF has a beta of 1.11 and standard deviation of 18.81% 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 $2.09 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.

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