IWF had a Huge Outflow of Funds in 2015


Dec. 6 2015, Updated 4:05 p.m. ET


The iShares Russell 1000 Growth ETF (IWF) is based on the Russell 1000 Growth Index. The index provider uses a growth investing approach aimed at beating the traditional market return. IWF currently manages a large portfolio of 646 holdings. A similar smart beta fund that manages a vast portfolio of holdings is the PowerShares FTSE RAFI US 1000 Portfolio (PRF). It’s based on the FTSE RAFI US 1000 Index. The stock selection methodology of PRF’s index provider is based on a multifactor model of book value, cash flow, sales, and dividends. PRF has 1000 stocks in its portfolio.

Article continues below advertisement

Massive fall in fund inflow, rise in volume

The above chart compares the historical fund inflow and the average volume of shares traded per day of IWF with PRF. Apparently, after witnessing healthy growth in fund inflow, IWF suffered a major downfall in its fund inflow in 2015. Rises in the inflow of funds are beneficial to a particular ETF as this raises the amount of cash in the hand of the fund manager. PRF too was unsuccessful in raising its inflow of fund in 2015. The volume trend, on the contrary, had witnessed a positive trend in its growth, signalling a rise in IWF’s demand.

Portfolio comparison

The top holdings of IWF are Apple (AAPL), Verizon (VZ), and Coca-Cola (KO). IWF manages a broad portfolio of more than 600 stocks. PRF, on the other hand, has JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC) among its top holdings. Both smart beta ETFs manage a large number of holdings. The top ten holdings of IWF represent 23.8% of its total portfolio, whereas PRF’s top ten holdings represent 18.5% of its portfolio.

The next part presents the a study of IWF’s holdings in detail.


More From Market Realist

  • Open sign on a sidewalk
    Macroeconomic Analysis
    Top Reopening Stocks to Play the Shifting Market Sentiment
  • Morgan Stanley sign and stock numbers
    Macroeconomic Analysis
    Morgan Stanley's Buyback Stock Picks in 2021
  • Black Wall Street sign is sign of ethical investing
    Macroeconomic Analysis
    Ethical Investing Stocks and Funds for Your 2021 Portfolio
  • New York City skyline and Goldman Sachs logo
    Macroeconomic Analysis
    Goldman Sachs: Options Trade Picks to Play Earnings Season Volatility
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.