MASPX
BlackRock Advantage Small/MidCap-Inst
Introduction to BlackRock Advantage Small/MidCap-Inst
The BlackRock Advantage Small/MidCap-Inst (MASPX) is a mutual fund designed to achieve long-term capital appreciation by investing primarily in equity securities. The fund targets small to mid-cap companies, offering investors exposure to a diverse range of sectors within the Russell 3000 Index. With a focus on growth, MASPX aims to capitalize on the potential of smaller companies to deliver substantial returns over time. Managed by BlackRock, a leader in investment management, the fund is structured to appeal to investors seeking aggressive growth opportunities in the equity market.
At A Glance
Executive Summary
MASPX offers a competitive 38.71% 1-year return with a low 0.48% expense ratio, focusing on small to mid-cap equities for growth.
Strong 1-year return of 38.71%. Low expense ratio of 0.48%. Diverse sector allocation with a focus on technology and industrials.
Higher beta of 1.22 indicates more volatility. Limited yield at 0.79%. Potentially higher risk due to small/mid-cap focus.
Impressive Recent Performance
MASPX has demonstrated remarkable performance over the past year, achieving a 38.71% return, which outpaces its benchmark, the S&P 500 Total Return Index, which posted a 37.62% return. This impressive performance highlights the fund’s ability to capitalize on market opportunities, particularly in the small to mid-cap space. The fund’s strategic allocation and stock selection have contributed to its strong returns, making it an attractive option for investors looking for high growth potential. The fund’s performance is a testament to its effective management and robust investment strategy.
Sector Allocation and Growth Potential
The fund’s sector allocation is a key driver of its growth potential, with significant investments in technology (16.23%) and industrials (18.80%). These sectors are known for their innovation and growth prospects, providing a solid foundation for the fund’s long-term capital appreciation goals. Additionally, the fund’s exposure to healthcare (14.76%) and financials (13.20%) offers diversification and stability, balancing the higher volatility associated with technology and industrials. This strategic sector allocation positions MASPX to benefit from emerging trends and economic shifts, enhancing its growth potential.
Risk and Volatility Considerations
Investors should be aware of the fund’s risk profile, characterized by a beta of 1.22, indicating higher volatility compared to the market. The fund’s standard deviation of 5.23% and a max drawdown of -8.6% further highlight the potential for fluctuations in value. However, the fund’s alpha of 1.05% suggests it has the potential to outperform the market on a risk-adjusted basis. While the fund’s focus on small to mid-cap stocks can lead to increased volatility, it also offers the opportunity for significant returns, making it suitable for investors with a higher risk tolerance.
Competitive Expense Ratio
MASPX boasts a competitive expense ratio of 0.48%, which is relatively low for a fund in the mid-cap category. This low expense ratio enhances the fund’s appeal by allowing investors to retain more of their returns. In comparison to similar funds, such as Columbia MidCap Growth-Inst2 (CMGVX) and Harbor Disruptive Innovation-Inst (HAMGX), MASPX offers a cost-effective option for investors seeking exposure to small and mid-cap equities. The fund’s efficient cost structure is a significant advantage, particularly for long-term investors looking to maximize their investment returns.
Portfolio Composition and Top Holdings
The fund’s portfolio is composed predominantly of U.S. equities, with a 97.43% allocation, focusing on small (55.54%) and medium (27.05%) market cap stocks. This composition reflects the fund’s strategy to leverage the growth potential of smaller companies. Top holdings include Toll Brothers Inc (1.35%), Reinsurance Group of America Inc (1.28%), and EMCOR Group Inc (1.26%), which are strategically selected to align with the fund’s growth objectives. The diverse range of holdings across various sectors supports the fund’s aim to achieve long-term capital appreciation.
Comparison with Similar Funds
When compared to similar funds, MASPX stands out due to its strong 1-year return of 38.71% and a low expense ratio of 0.48%. While Columbia MidCap Growth-Inst2 (CMGVX) and Columbia MidCap Growth-Inst3 (CMGYX) have slightly higher returns, they also come with higher expense ratios. MASPX’s balanced approach to sector allocation and its focus on small to mid-cap stocks provide a unique investment opportunity. The fund’s performance and cost efficiency make it a compelling choice for investors seeking growth in the mid-cap space, particularly those who prioritize cost-effective investment options.
Conclusion: Suitability for Growth-Oriented Investors
MASPX is an ideal choice for growth-oriented investors seeking exposure to small and mid-cap equities. Its impressive recent performance, competitive expense ratio, and strategic sector allocation make it a standout option in the mid-cap category. While the fund’s higher volatility may not suit all investors, those with a higher risk tolerance can benefit from its potential for substantial returns. MASPX’s focus on innovation-driven sectors and its effective management by BlackRock position it as a strong contender for investors looking to enhance their portfolio with high-growth potential investments.
Similar Securities
PMEGX: TRPrice Inst MidCap Equity Growth-Inst | Mid-Cap Growth Investment
PMEGX offers mid-cap growth with a 0.61% expense ratio, focusing on stocks with high earnings potential. Strong 1-year return of 29.07%.
JAMVX: Janus Henderson VIT MidCap Value-Inst | MidCap Value Growth Fund
JAMVX offers a strategic focus on undervalued mid-cap stocks with a competitive expense ratio of 0.68%, aiming for capital growth.
VVOAX: Invesco Value Opportunities-A | MidCap Value Growth & Income
VVOAX offers a unique blend of growth and income with a focus on undervalued midcap stocks, boasting a 51.16% 1-year return and a 1.07% expense ratio.
LBFIX: ClearBridge Select-I | High-Growth MidCap Equity Fund
LBFIX stands out with a 40.59% 1-year return and a tech-heavy portfolio, offering high growth potential for midcap investors.
BRMIX: iShares Russell MidCap IxFd-Inst | Growth-Focused MidCap Investment
BRMIX offers low-cost exposure to US mid-cap stocks with a 0.09% expense ratio, ideal for growth-focused investors seeking mid-cap market exposure.
Futher Reading
https://www.morningstar.com/funds/xnas/MASPX/quote
https://finance.yahoo.com/quote/MASPX/”>Yahoo: BlackRock Advantage Small/MidCap-Inst
https://ftcloud.fasttrack.net/web/chart/MASPX
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