ETFs
VBK, IWP: 2 growth ETFs with upside potential, according to analysts
Growth ETFs (exchange-traded funds) invest in companies with a proven track record of superior average revenue and earnings growth rates. These ETFs seek to capitalize on the long-term potential of these high-growth companies. Today we have selected two growth ETFs – VBK And IWP – with a potential increase of more than 10% predicted by analysts over the next twelve months.
Let’s take a closer look at what Wall Street thinks of these two ETFs.
Vanguard Small Cap Growth ETF (VBK)
The VBK ETF seeks to track the performance of the CRSP US Small Cap Growth Index, which is comprised of US small company growth stocks. The ETF aims to hold each stock in almost the same proportion as its weighting in the index.
VBK has assets under management (AUM) of $17.25 billion, with its top 10 holdings contributing 10.25% of the portfolio. Above all, it has a very low spending rate of 0.07%. The VBK ETF returned 1.3% over the past six months.
On TipRanks, the VBK ETF has a Moderate Buy consensus rating. Of the 620 stocks held, 457 have a buy rating, 146 have a hold rating, and 17 have a sell rating. THE Average analyst price target on the VBK ETF of $301.21 implies an upside potential of 21.14% from current levels.
iShares Russell Mid-Cap Growth ETF (IWP)
The IWP ETF seeks to track the performance of the Russell Midcap Growth Index, which is comprised of mid-cap U.S. stocks. It provides exposure to stocks whose earnings are expected to grow at an above-average rate relative to the market.
IWP has assets under management of $14.28 billion, with its top 10 holdings contributing 15.79% of the portfolio. Additionally, its expense ratio is low at 0.23%, making it a profitable option. Interesting way, IWP generated a return of 5.6% over the last six months.
On TipRanks, the IWP ETF has a Moderate Buy consensus rating. Of the 330 stocks held, 255 have a buy rating, 66 have a hold rating and nine have a sell rating. THE analysts’ average price target of $124.45 implies an upside potential of 12.53% from current levels.
Final Thoughts
ETFs provide a low-cost, diversified and transparent way to participate in the market. These benefits, along with the 10%+ upside potential expected by analysts from the VBK and IWP ETFs, are worth investors considering.