What IWF actually is

IWF follows the Russell 1000 Growth Index, the growth half of the 1,000 largest US companies. Growth stocks are those with higher expected earnings growth and richer valuations.

What is inside

A handful of mega-cap technology and consumer companies make up a big part of the fund, along with health care and other growth businesses. It is much more concentrated at the top than a total-market fund.

Distributions

IWF pays a small dividend quarterly. Growth companies tend to reinvest earnings or buy back shares, so the income is low and the fund is meant for growth.

What to keep in mind

  • Concentration. A few names move the fund.
  • Valuation risk. Growth stocks can fall hard when expectations change.
  • Low income. Not suitable for those who need dividends.

Quick take

IWF is a growth-oriented fund with low income. If you want dividends, compare it with a value fund such as IWD.