Average Daily Volume
33.51M
Fund Overview
The iShares Russell 2000 ETF (IWM) is one of the most popular ETFs for gaining exposure to small-cap U.S. stocks. It tracks the Russell 2000 Index, which consists of approximately 2,000 small-cap companies representing about 10% of the total U.S. equity market. These companies are typically more domestically focused and have higher growth potential but also come with greater volatility compared to large-cap stocks. IWM provides investors with diversified access to this segment of the market, which can offer opportunities for growth, especially during economic expansions. The fund is widely used by investors seeking to capitalize on the performance of smaller companies that may be more nimble and responsive to economic changes.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 1.34 %
- Currency Hedged
-
No
- Portfolio Turnover
-
17 %
- Dividend Date
-
Why Invest in the IWM ETF?
Potential Benefits
- Provides diversified exposure to small-cap U.S. stocks, which historically have outperformed large-caps over long periods.
- Offers potential for higher growth compared to large-cap ETFs, as small-cap companies are often in earlier growth stages.
- Liquidity is high due to IWM being one of the largest and most traded small-cap ETFs.
- Low expense ratio (0.19%) makes it cost-effective for long-term investors.
- Can serve as a hedge against large-cap underperformance in certain market conditions.
Potential Risks
- Small-cap stocks are more volatile and sensitive to economic downturns than large-cap stocks.
- Higher susceptibility to liquidity risks, especially during market stress.
- Many small-cap companies have less established business models and may face higher failure rates.
- Performance can lag during periods when large-cap stocks dominate the market.
- Sector concentration in financials, industrials, and healthcare may amplify risks in those industries.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+5.5%
|
+0.7%
|
-5.0%
|
+12.1%
|
+4.5%
|
+3.7%
|
-3.1%
|
+0.9%
|
-5.2%
|
+1.3%
|
-
|
-
|
| 2025 |
+2.5%
|
-5.2%
|
-6.9%
|
-2.3%
|
+5.2%
|
+5.5%
|
+1.7%
|
+7.2%
|
+3.2%
|
+1.8%
|
+1.0%
|
-0.7%
|
| 2024 |
-3.9%
|
+5.6%
|
+3.5%
|
-6.8%
|
+5.0%
|
-1.1%
|
+10.3%
|
-1.7%
|
+0.7%
|
-1.4%
|
+11.1%
|
-8.4%
|
| 2023 |
+9.8%
|
-1.7%
|
-4.8%
|
-1.8%
|
-0.8%
|
+8.1%
|
+6.1%
|
-5.1%
|
-5.8%
|
-6.9%
|
+9.2%
|
+12.1%
|
| 2022 |
-9.5%
|
+1.0%
|
+1.2%
|
-9.9%
|
+0.2%
|
-8.4%
|
+10.6%
|
-2.0%
|
-9.7%
|
+11.2%
|
+2.2%
|
-6.5%
|
| 2021 |
+4.8%
|
+6.2%
|
+1.4%
|
+1.8%
|
+0.3%
|
+1.9%
|
-3.6%
|
+2.2%
|
-2.9%
|
+4.3%
|
-4.3%
|
+2.3%
|
| 2020 |
-3.1%
|
-8.8%
|
-21.5%
|
+13.8%
|
+6.6%
|
+3.4%
|
+2.9%
|
+5.5%
|
-3.2%
|
+2.2%
|
+18.2%
|
+8.6%
|
| 2019 |
+11.3%
|
+5.2%
|
-2.1%
|
+3.4%
|
-7.9%
|
+7.0%
|
+0.7%
|
-4.9%
|
+2.0%
|
+2.7%
|
+4.1%
|
+2.8%
|
| 2018 |
+2.6%
|
-3.8%
|
+1.2%
|
+1.0%
|
+6.2%
|
+0.6%
|
+1.6%
|
+4.3%
|
-2.3%
|
-11.0%
|
+1.7%
|
-12.0%
|
| 2017 |
+0.3%
|
+1.9%
|
0.0%
|
+1.1%
|
-2.0%
|
+3.4%
|
+0.9%
|
-1.3%
|
+6.3%
|
+0.7%
|
+2.9%
|
-0.4%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
SFM
|
SPROUTS FARMERS MARKET INC |
0.7 % |
|
INSM
|
INSMED INC |
0.5 % |
|
FTAI
|
FTAI AVIATION LTD |
0.4 % |
|
SSB
|
SOUTHSTATE CORP |
0.4 % |
|
AIT
|
APPLIED INDUSTRIAL TECHNOLOGIES INC |
0.4 % |
|
MLI
|
MUELLER INDUSTRIES INC |
0.4 % |
|
BECN
|
BEACON ROOFING SUPPLY INC CLASS A |
0.4 % |
|
COOP
|
MR. COOPER GROUP INC |
0.4 % |
|
CRS
|
CARPENTER TECHNOLOGY CORP |
0.4 % |
|
HALO
|
HALOZYME THERAPEUTICS INC |
0.3 % |
Top 10 holdings shown, out of 1 total holdings.
Related ETFs: IWM vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
IWM seeks to track the performance of the Russell 2000 Index, a market-cap-weighted index of U.S. small-cap stocks. The index includes approximately 2,000 companies, representing the bottom 10% of the Russell 3000 Index by market capitalization. The fund employs a passive management approach, aiming to replicate the index's holdings rather than outperform it. IWM primarily holds common stocks of small-cap companies across various sectors, with financials, industrials, and healthcare being the largest allocations. The fund is rebalanced annually when the Russell 2000 Index undergoes its reconstitution process, ensuring it remains representative of the small-cap universe.
Frequently Asked Questions
What is the difference between IWM and IJR?
IWM tracks the Russell 2000 Index (~2,000 stocks), while IJR follows the S&P 600 (~600 stocks). The S&P 600 has profitability requirements, making IJR's holdings generally more established than IWM's.
Is IWM a good long-term investment?
IWM can be a good long-term holding for investors seeking small-cap growth potential, but its higher volatility means it requires a longer time horizon to potentially realize its historical outperformance over large-caps.
How often does IWM rebalance?
IWM rebalances annually when the Russell 2000 Index undergoes its complete reconstitution, typically in June.
Does IWM pay dividends?
Yes, IWM pays quarterly dividends derived from the underlying stocks in the Russell 2000 Index, though yields are typically lower than large-cap ETFs.
What percentage of IWM is in technology stocks?
As of the latest data, technology represents approximately 15-20% of IWM's holdings, though sector weights fluctuate with market conditions.
Industry Overview
The iShares Russell 2000 ETF (IWM) provides exposure to the small-cap segment of the U.S. equity market, which includes companies with market capitalizations typically between $300 million and $2 billion. Small-cap stocks are known for their growth potential but also come with higher volatility and risk compared to large-caps. Investing in IWM allows participation in the performance of domestically focused businesses that may benefit from economic expansions, innovation, and acquisitions. However, small-caps are more vulnerable to economic downturns and liquidity constraints. The Russell 2000 Index, which IWM tracks, is market-cap-weighted and reconstituted annually to maintain its small-cap focus.
Alternative Comparison
Compared to the SPDR S&P 600 Small Cap ETF (IJR), IWM offers broader exposure with approximately 2,000 holdings versus IJR's 600. IJR follows the S&P 600, which has stricter profitability requirements, potentially making it slightly less volatile than IWM. Meanwhile, the Vanguard Small-Cap ETF (VB) tracks the CRSP US Small Cap Index, which includes more mid-cap exposure, resulting in a slightly larger average market cap than IWM. IWM's expense ratio (0.19%) is competitive with VB (0.05%) but higher than IJR (0.06%). Investors seeking pure small-cap exposure may prefer IWM, while those prioritizing lower costs or profitability screens might consider IJR or VB.
Issuer Overview
iShares, a division of BlackRock, is the largest ETF provider globally, known for its broad range of index-tracking funds. With over $3 trillion in assets under management, iShares offers investors reliable, low-cost access to various asset classes. The firm is recognized for its strong liquidity management, transparent methodologies, and investor education resources. IWM is one of iShares' flagship products, providing efficient exposure to small-cap equities.
Conclusion
The iShares Russell 2000 ETF (IWM) remains a core holding for investors seeking diversified small-cap exposure. Its broad representation of the U.S. small-cap market, combined with strong liquidity and a reasonable expense ratio, makes it a practical choice for long-term growth portfolios. However, investors should be prepared for higher volatility and periodic underperformance relative to large-caps. IWM is best suited for those with a higher risk tolerance and a long investment horizon who believe in the growth potential of smaller companies.
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