iShares S&P 500 Growth ETF
IVWThe iShares S&P 500 Growth ETF (IVW) is an exchange-traded fund that invests in U.
S. large-cap growth stocks. It provides targeted exposure to companies expected to grow earnings faster than the broader market, serving as a core vehicle for investors seeking capital appreciation.
Updated: February 19, 2026, 16:00 EST
Investment Opinion: Should I buy IVW Today?
Based on the provided analysis, here is an assessment of whether IVW is worth buying.
Technical Analysis: IVW shows solid long-term strength from its 52-week low but is currently in a short-term downtrend. Its recent underperformance against the broader market aligns with its higher volatility (beta of 1.1). Trading in the upper half of its yearly range, the current price suggests it is not excessively valued, presenting a potential entry point after the recent pullback.
Fundamentals & Valuation: A detailed fundamental analysis is not possible with the limited data, which is a significant constraint. The valuation, indicated by a TTM P/E of 32.3, is high and relies on robust future earnings growth from its growth-stock holdings to be justified.
Risk: The ETF carries moderate volatility risk, as evidenced by its beta and a significant historical drawdown. The primary risk is its concentration in large-cap growth stocks, particularly technology, making it sensitive to sector-specific downturns.
Buy Recommendation:
IVW represents a strategic bet on the long-term outperformance of large-cap growth stocks. While its elevated P/E ratio demands strong future earnings delivery, the recent price pullback from its high offers a more attractive entry point for investors with a higher risk tolerance. It is suitable for those seeking growth exposure and who are comfortable with the inherent volatility of the sector. Investors should monitor broader market trends and technology sector performance closely.
*Note: This is not investment advice, for reference only.*
IVW 12-Month Price Forecast
RockFlow Model Forecast: Three Scenarios for 2026
Based on the comprehensive analysis provided, here is a 12-month outlook for the iShares S&P 500 Growth ETF (IVW):
The primary catalyst for IVW's performance will be the earnings growth of its large-cap technology and growth stock holdings; strong quarterly results and maintained forward guidance are essential to justify its lofty valuation. However, the key risk remains its sensitivity to interest rates and sector rotation—any resurgence of inflation or shift in market preference toward value stocks could lead to significant underperformance. Given the high starting valuation (P/E of 32.3), upside is likely contingent on a benign macroeconomic backdrop, placing the 12-month target range in the $125-$135 area, contingent on earnings growth meeting expectations. Investors should be prepared for elevated volatility compared to the broader market.
Wall Street Consensus
Most Wall Street analysts are optimistic about iShares S&P 500 Growth ETF's 12-month outlook, with consensus target around $119.95, indicating expected upside potential.
Bulls vs Bears: IVW Investment Factors
Overall, IVW has investment potential but also faces challenges. Here are key factors to weigh before investing.
Bullish
- Strong Bull Market: S&P 500 is heading for its third straight annual gain.
- Growth Stock Leadership: Growth stocks have powered the S&P 500's spectacular performance.
- Favorable Macroeconomic Backdrop: Growth forecasts are rising and Fed cut hopes are building.
- Increased Investor Inflows: Investors are pouring billions back into U.S. equity ETFs.
- High Beta Outperformance: High-beta stocks, often growth-oriented, are leading equity risk factors.
Bearish
- Market Rotation to Value: There is a significant surge of value stocks outperforming growth.
- Investor Selling Pressure: Investors are selling off growth stocks in favor of value.
- AI-Driven Disruption Risk: AI acceleration is prompting a market rotation away from growth.
- Neutral Near-Term Bias: Neutral near and mid-term readings could moderate long-term positive bias.
- Support Level Test: The ETF's price support level is currently being tested.
IVW Technical Analysis
IVW has demonstrated strong long-term appreciation from its 52-week low but is currently experiencing a short-term downtrend.
The ETF has underperformed over the past one and three months, with declines exceeding 3.5%, and has trailed the broader market by approximately 3.62% in the recent quarter, aligning with its beta of 1.1 which indicates higher volatility. This recent weakness contrasts with its substantial recovery from the 52-week low.
Currently trading near $119.4, IVW is in the upper quartile of its 52-week range, approximately 50% above its low but still about 5.7% below its high, suggesting it is neither severely overbought nor oversold despite the recent pullback from its peak.
| Period | IVW Return | S&P 500 |
|---|---|---|
| 1m | -0.8% | +1.0% |
| 3m | -0.8% | +1.9% |
| 6m | +3.6% | +6.5% |
| 1y | +13.2% | +12.1% |
| ytd | -2.8% | +0.2% |
IVW Fundamental Analysis
Based on the limited information provided, a comprehensive fundamental analysis of IVW cannot be conducted. The absence of recent quarterly reports and standard financial ratios precludes any meaningful assessment of its operational performance or financial standing.
Without access to balance sheet or cash flow statement data, it is impossible to evaluate the company's leverage, liquidity, or overall financial health. Similarly, the lack of profitability metrics and operational data prevents any analysis of revenue trends, margins, or efficiency ratios such as ROE.
A thorough fundamental analysis requires the detailed financial statements that are currently unavailable. Investors should seek access to IVW's official SEC filings or company reports to enable a proper evaluation of its investment merits.
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Try Now & Get Tesla Stock RewardValuation Analysis: Is IVW Overvalued?
Based on the TTM PE ratio of 32.3, IVW appears to be trading at a premium valuation. This elevated multiple suggests the market has high growth expectations for its underlying holdings, which may indicate the fund is overvalued unless future earnings growth significantly accelerates.
A peer comparison is not feasible as specific industry average data is unavailable. The analysis is therefore limited to the absolute level of the PE ratio without the critical context of how it measures against the valuation of comparable companies or its sector.
Investment Risk Disclosure
Based on its beta of 1.1 and a one-year maximum drawdown of -22.24%, IVW exhibits a moderate level of volatility risk. The beta indicates it is slightly more volatile than the broader market, and the substantial drawdown demonstrates its susceptibility to significant declines during market downturns.
The absence of reported short interest suggests minimal speculative pressure against the fund. Its composition of large-cap growth stocks typically ensures high liquidity, with the primary risk being sector concentration within the technology-heavy growth segment.
FAQs
Neutral - IVW presents conflicting signals. On the bullish side, strong market momentum and a favorable macroeconomic backdrop support growth stocks. However, significant rotation into value stocks and recent technical weakness create headwinds. This ETF is suitable for long-term growth investors who can tolerate moderate volatility, but short-term traders may face challenges.
Based on the limited data, IVW appears potentially overvalued. The TTM P/E ratio of 32.3 is quite high in absolute terms, suggesting the market has priced in substantial earnings growth. The P/B ratio of 1.6 provides some context but doesn't offset the elevated P/E multiple. Without forward P/E, peer comparisons, or growth metrics like PEG, the valuation relies heavily on investor confidence in future earnings growth justifying this premium multiple.
Based on the provided information, here are the key risks of holding IVW:
1. Sector Concentration Risk: Heavy weighting in the technology sector makes the fund susceptible to downturns specific to that industry. 2. Market Volatility Risk: With a beta of 1.1, the fund is likely to experience larger price swings, both up and down, than the broader market. 3. Growth Stock Sensitivity: As a large-cap growth stock ETF, it is vulnerable to underperformance during periods of rising interest rates or when value stocks are in favor.
Based on the available analysis projecting a forward path, here is a forecast for IVW stock through 2026.
My forecast for 2026 includes a base case target price range of $145-$160 and a bull case in the $170-$190 range. The primary growth drivers will be continued earnings expansion from its dominant technology holdings and a stable or declining interest rate environment that supports growth stock valuations. A key assumption is that the U.S. avoids a significant recession, allowing corporate earnings to grow steadily; however, this forecast carries high uncertainty as IVW's performance is critically dependent on macroeconomic factors, particularly inflation and Fed policy, making its path highly volatile.