IWF tracks the Russell 1000 Growth Index, which selects Russell 1000 companies with higher price-to-book ratios and higher forecast growth. Technology and related companies such as Apple, Microsoft, NVIDIA, Amazon and Meta make up a large share of the fund, so a small number of stocks drive performance. Dividend yield is low because growth companies tend to reinvest their profits. Growth stocks are more sensitive to rising interest rates, as in 2022, when the style fell more than the broad market. IWF is often compared with VUG, which tracks a CRSP index.
