iShares Morningstar Large Growth Index Fund (NYSEArca: JKE)
The $468.2 million iShares Morningstar Large Growth Index Fund is not a high beta ETF per se. JKE has a beta of 0.94 against the S&P 500 and a three-year standard deviation of almost 16.8%, according to iShares data. However, the ETF stands as a solid play on the cyclical rotation theme.
JKE, which tracks the Morningstar Large Growth Index, allocates 29.4% of its weight to technology shares. High-beta Apple (NASDAQ: AAPL) and Google (NASDAQ: GOOG) are JKE’s two largest holdings, combing for almost 15% of the fund’s weight. Consumer goods and financials combine for nearly 25 percent of JKE’s weight, indicating the ETF is amply exposed to higher beta sectors.
Among the 94 stocks in JKE’s lineup are more docile names such as Dow components International Business Machines (NYSE: IBM), Coca-Cola (NYSE: KO) and Home Depot (NYSE: HD), which shows this ETF offers something for conservative investors looking to profit from the cyclical rotation. JKE’s year-to-date volatility of 11.2% is only slightly higher than the S&P 500’s and the fund has jumped almost 8% in the past month.
ETF Trends editorial team contributed to this story.