The iShares Russell 2000 Value ETF (IWN) offers a low-cost way to invest in small-cap value stocks, appealing to many investors.
New York: The iShares Russell 2000 Value ETF, or IWN, is designed to give you a broad look at small-cap value stocks in the U.S. It’s been around since 2000 and is managed by Blackrock. With over $12 billion in assets, it’s one of the biggest ETFs in this category.
So, what’s the deal with small-cap value stocks? These are companies worth less than $2 billion. They can be riskier but often have more growth potential compared to larger companies. Value stocks usually have lower price-to-earnings ratios, but they might not grow as fast as growth stocks. Historically, value stocks have outperformed growth stocks in the long run, but growth stocks can shine in booming markets.
When it comes to costs, IWN has an expense ratio of just 0.24%, which is pretty good. Plus, it offers a dividend yield of 1.78%. Lower costs can lead to better returns over time, so it’s something to keep an eye on.
This ETF is heavily invested in the Financials sector, making up about 29.20% of its portfolio. Other sectors like Industrials and Real Estate also play a big role. The top holdings include Southstate Corp, Jackson Financial, and Old National Bancorp, which together account for a small portion of the total assets.
IWN aims to track the Russell 2000 Value Index, and it’s done pretty well lately. It’s up about 13.43% over the past year, with a beta of 1.16, indicating a medium level of risk. With around 1,441 holdings, it helps spread out the risk of any single company.
If you’re considering alternatives, IWN has a Zacks ETF Rank of 2, which is a “Buy.” Other options include the Avantis U.S. Small Cap Value ETF and the Vanguard Small-Cap Value ETF, both of which track similar indices but have different expense ratios.
In short, passively managed ETFs like IWN are gaining popularity for their low costs and transparency. They’re great for long-term investors looking for a solid investment vehicle.
If you want to dive deeper into ETFs, check out Zacks ETF Center for more info and updates.
