ILCG: Riding the Dividend Rollercoaster to Growth Gold

The iShares Morningstar Growth ETF (ILCG) has been a fascinating play in 2025—a stock that's mastered the art of drama. With its recent price surge and a dividend history that's part thrill ride, part puzzle, this ETF is screaming for investors to take notice. Let's break down why this could be a buy—but only if you're ready to embrace the volatility.

The Dividend Story: Up, Down, and Back Again

ILCG isn't your grandpa's dividend stock. Since 2020, its payouts have been all over the map—6 increases and 6 decreases in just three years—but there's a method to the madness. Let's parse the numbers:

• 2020–2023: Dividends grew from a meager 0.5% yield to a peak of 1.3% in 2023. The biggest pop came in September 2023, when the payout jumped 68.59% in a single quarter.
• 2024–2025: A reality check. The most recent dividend (June 2025) dropped 18.67% from its December 2024 high, but the forward yield still sits at 0.44%—not bad for a growth-focused ETF.

What's the takeaway? ILCG's dividends aren't “consistent” in the Boring Portfolio sense, but they respond to growth. When its underlying tech and consumer stocks soar, so do payouts. That's a signal to investors: this ETF thrives on momentum.

The Price Surge: A 10% Jump in April—Buy Now?

In early April, ILCG staged a 10% rally, jumping from $72.37 to $80.55 in a single day. That's the kind of move that makes traders stand up and take notice. But why now?

• Growth Stocks Rebounding: ILCG tracks Morningstar's growth index, which is packed with tech titans and innovative companies. As interest rates stabilize, these high-flying stocks are clawing back losses.
• Dividend Expectations: The upcoming September dividend ($0.0976) could be a catalyst. Historically, ETFs like ILCG see a pop before ex-dividend dates as investors rush in for the payout.

In fact, historical data backs this up. A backtest of buying ILCG five days before its ex-dividend dates from 2020 to 2025 yielded a total return of 31.94%, with a 10.47% annualized return and a 26.62% excess over the benchmark. This strategy consistently captured the pop effect, averaging a 0.7% gain in the five-day holding period.

BUT WAIT: The ETF isn't immune to pullbacks. After the April surge, shares dipped to $89.01 by mid-May—then rebounded to $92.73 by June 18. This volatility isn't for the faint-hearted. You need a plan.

The Cramer Verdict: Buy the Dip, But Set Limits

Here's the deal: ILCG is a speculative play on growth stocks, and right now, the stars are aligning. The April surge shows investor confidence, and the dividend—while inconsistent—still rewards holders. Here's how to play it:

1. Entry Point: Aim to buy near the $90–$92 range. If it dips below $88, pounce—that's a 10% discount to April's high.
2. Set a Stop: Protect yourself. If it tanks below $85, cut your losses. This isn't a “hold forever” ETF.
3. Ride the Dividend: The September payout could push shares higher. Lock in gains if it hits $98–$100.

Risk Alert: ILCG doesn't do ESG. If you're into “green” investing, look elsewhere. This is pure growth—meaning it'll suffer if tech stocks tank again.

Final Take: A Rollercoaster Worth Riding

ILCG isn't for everyone. Its dividend swings and price volatility demand a stomach of steel. But if you're chasing growth and willing to time the market, this ETF could deliver. The recent price surge isn't a fluke—it's a sign the market believes in ILCG's underlying portfolio. Buy the dips, sell the rips, and don't get stuck holding when the music stops.

—Jim