IWY ETF Climbs to $270.12 Backed by Nvidia, Microsoft, and AI Growth

NYSEARCA:IWY ETF Price Momentum and Market Position

The iShares Russell Top 200 Growth ETF (NYSEARCA:IWY) closed at $270.12, adding 0.98% in the latest session, marking a fresh 52-week high compared with a low of $180.65. Year-to-date returns stand at 13.95%, above the category average of 10.67%. Over one year, IWY delivered 25.34%, while its three-year annualized return is 25.37%, showing clear outperformance versus the category at 19.70% and 22.21%. Over a five-year horizon, IWY surged 128.7%, outpacing SPY at 108.6% and QQQ at 119.9%.

Portfolio Concentration in Technology Giants

IWY manages $15.2 billion in assets with a competitive 0.20% expense ratio, but it is highly concentrated, with the top 10 holdings representing 62% of its portfolio. NVIDIA (NVDA) holds 12.97%, Microsoft (MSFT) 11.92%, Apple (AAPL) 11.02%, Amazon (AMZN) 5.51%, and Broadcom (AVGO) 4.79%. Sector exposure is led by technology at 53.62%, followed by consumer cyclicals at 12.79% and communications at 12.76%. This structure positions IWY as a direct play on the dominance of mega-cap tech.

Growth Outlook Backed by Earnings Expansion

The top 25 holdings forecast 14.2% revenue growth next year and 20.1% EPS expansion, with standouts such as NVIDIA growing revenue by 58.29% this year and Broadcom posting a 445.44% EPS surge. Tesla shows a near-term EPS contraction of -16.6% but is expected to rebound strongly with a 35.45% gain in 2026. Amazon projects an upside of 31.49%, Microsoft 22.57%, and Alphabet around 24.58%. The weighted average upside across holdings sits at 17.98%, reinforcing IWY’s forward growth case.

Valuation Metrics and Risk Profile

Trading at a P/E ratio of 38.37 and a forward P/E of 31.96, IWY carries a premium compared with peers like QQQ at 26.58. Its beta of 1.13 reflects moderate market sensitivity, lower than QQQ at 1.16 but higher than SPY at 1.01. Yield remains marginal at 0.39%, consistent with its growth mandate. Risk-adjusted growth metrics remain robust, with risk-adjusted EPS for next year at 17.76, slightly above group averages, confirming efficiency in risk-to-return balance.

Relative Performance Against Other Growth ETFs

Compared to VUG ($476.21) and IWF ($464.56), IWY shows a disciplined weighting methodology by capping individual stock exposure at 22.5%, helping balance mega-cap concentration. Over five years, IWY’s 128.7% return is ahead of IWF’s 121.1% and VUG’s 126.5%, reinforcing its consistent strength. While QQQ benefits from Nasdaq 100 concentration, IWY’s structured weighting delivers more even growth exposure with less extreme volatility.

AI Capital Expenditure as a Secular Driver

With hyperscalers investing $80–100 billion at Microsoft and over $100 billion at Amazon for AI infrastructure, IWY’s core holdings are positioned at the center of this CAPEX supercycle. Broadcom’s $10 billion OpenAI deal and Oracle’s 3.3x RPO increase to $455 billion highlight the demand for AI chips and data center solutions. IWY’s overweight in Nvidia, Alphabet, and Meta ensures direct leverage to the ongoing AI adoption curve, much like the early internet and cloud eras.

Investment Verdict on NYSEARCA:IWY ETF

The ETF’s premium valuation is offset by superior growth metrics and consistent long-term performance. With risk-adjusted returns ahead of peers and heavy exposure to AI-driven megacaps, IWY remains a Buy at $270.12, with potential to climb into the $300–310 range over the next year. While concentration risk exists, the disciplined capping of mega-cap weights makes IWY a balanced yet powerful way to capture U.S. large-cap growth.

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