The iShares Morningstar Mid-Cap ETF (IMCB) was launched on June 28, 2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $1.52 billion, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Mid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. Thus they have a nice balance of growth potential and stability.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.3%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector -- about 19.8% of the portfolio. Information Technology and Financials round out the top three.
Looking at individual holdings, Newmont (NEM) accounts for about 0.94% of total assets, followed by Howmet Aerospace Inc (HWM) and Corning Inc (GLW).
The top 10 holdings account for about 6.75% of total assets under management.
Performance and Risk
IMCB seeks to match the performance of the MORNINGSTAR US MID CAP INDEX before fees and expenses. The Morningstar US Mid Cap Index comprises of mid-capitalization U.S. equities.
The ETF return is roughly 6.81% so far this year and was up about 26.97% in the last one year (as of 04/15/2026). In the past 52-week period, it has traded between $68.57 and $88.76.
The ETF has a beta of 1.01 and standard deviation of 14.99% for the trailing three-year period. With about 406 holdings, it effectively diversifies company-specific risk.
Alternatives
iShares Morningstar Mid-Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IMCB is a reasonable option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Mid-Cap Index Fund ETF Shares (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap Index Fund ETF Shares has $96.96 billion in assets, iShares Core S&P Mid-Cap ETF has $113.26 billion. VO has an expense ratio of 0.03% and IJH charges 0.05%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares Morningstar Mid-Cap ETF (IMCB): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).