From Nasdaq: 2024-05-02 06:20:07

The iShares Russell 2000 ETF (IWM) was launched on 05/22/2000 by Blackrock. With assets over $58.13 billion, it provides broad exposure to the Small Cap Blend segment of the US equity market.

Small cap companies, with market capitalization below $2 billion, are high-potential but higher risk investments. Blend ETFs like IWM combine growth and value stocks, offering qualities of both value and growth investments.

IWM has heaviest allocation to the Industrials sector at 17.50%. Top holdings include Super Micro Computer Inc (SMCI) and Microstrategy Inc Class A (MSTR). It seeks to match the Russell 2000 Index performance, with an expense ratio of 0.19% and a dividend yield of 1.32%.

The ETF has lost -1.93% this year and is up 13.46% in the past year. Its standard deviation is 22.89%, making it a medium risk choice. Alternative ETFs to consider are the Vanguard Small-Cap ETF (VB) and the iShares Core S&P Small-Cap ETF (IJR).

Passively managed ETFs like IWM are attractive to investors due to low costs, transparency and tax efficiency. Investors seeking exposure to the Small Cap Blend segment may find IWM a compelling choice for long-term investment.

Read more at Nasdaq: Should iShares Russell 2000 ETF (IWM) Be on Your Investing Radar?