IWN ETF

In recent years, the Russell 2000 Value ETF has not performed as well as the S&P 500 and other major indexes. It has a lower price/book ratio, a higher dividend yield, and a smaller market cap than the overall Russell 2000. However, the differences in their portfolios are not very significant, which makes IWN less attractive.

The iShares Russell 2000 Value ETF (IWN) was created on July 24, 2000. It is a passively managed fund that aims to provide wide access to the Small Cap Value part of the US stock market.

The iShares Russell 2000 Value ETF does not effectively reflect the small-cap value premium because it uses old and inconsistent value-growth factors. Its approach weakens the value premium by including growth stocks and giving them a share in the value index. Additionally, not having a profitability filter raises the risk, as many small-cap stocks in the ETF are not profitable and carry high risk.

iShares Russell 2000 Value ETF owns small-cap value stocks with lower growth potential than broader small-cap space. IWN's portfolio of small-cap stocks is less established, leading to higher volatility, especially during economic turmoil. Successful small-cap stocks in IWN's portfolio will soon graduate to mid-cap or large-cap, causing underperformance compared to mid-cap and large-cap peer funds.

Designed to provide broad exposure to the Small Cap Value segment of the US equity market, the iShares Russell 2000 Value ETF (IWN) is a passively managed exchange traded fund launched on 07/24/2000.

iShares Russell 2000 Value ETF offers exposure to undervalued small-cap U.S. equities. The IWN ETF has a well-diversified portfolio with top holdings in the energy, banking, and construction sectors. Investing in IWN can provide higher returns and diversify a U.S. stock allocation, but carries risks of lower stability and higher volatility.

Looking for broad exposure to the Small Cap Value segment of the US equity market? You should consider the iShares Russell 2000 Value ETF (IWN), a passively managed exchange traded fund launched on 07/24/2000.

Launched on 07/24/2000, the iShares Russell 2000 Value ETF (IWN) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Value segment of the US equity market.

iShares Russell 2000 Value ETF combines two factors of the Fama-French model: size and value. IWN may be useful not only in a buy-and-hold approach, but also in tactical allocation strategies. IWN has underperformed its parent index and peers in the past 10 years and has some weaknesses in its methodology.