(IMCB) Morningstar Mid-Cap - Overview

The iShares Morningstar Mid-Cap ETF (NYSE ARCA: IMCB) commits at least 80% of its net assets to the securities that comprise its benchmark, the Morningstar U.S. Mid-Cap Growth-Value Index, or to securities that are “substantially identical” in economic characteristics. The index targets U.S. mid-cap stocks that score high on both growth and value dimensions according to Morningstar’s proprietary methodology.

Key quantitative facts (as of Q4 2025) that add context: • Expense ratio ≈ 0.15% – modest relative to peers, supporting cost-efficient exposure. • Assets under management ≈ $6.2 billion, indicating strong investor demand for blended mid-cap exposure. • Weighted average market cap ≈ $12 billion, positioning the fund squarely in the middle-cap range where earnings growth tends to outpace large-cap while maintaining more stable cash flows than small-caps.

Macro-level drivers that can materially affect IMCB’s performance: • U.S. GDP growth forecasts of 1.8-2.2% for 2025 suggest a supportive environment for mid-cap earnings, which are more sensitive to domestic demand than large-caps. • The Federal Reserve’s policy stance (target Fed Funds rate ~5.0%) influences borrowing costs; mid-caps typically have higher leverage than large-caps, making them more rate-sensitive. • Sector composition leans heavily toward industrials (≈ 22%) and information technology (≈ 18%); therefore, trends in manufacturing activity and tech spending are primary performance catalysts.

For a deeper, data-driven analysis of how IMCB’s blend of growth and value attributes behaves across market cycles, you might explore the ValueRay platform’s back-tested factor attribution tools.