Should iShares Russell 2000 ETF (IWM) Be on Your Investing Radar?

Looking for broad exposure to the Small Cap Blend segment of the US equity market? You should consider the iShares Russell 2000 ETF (IWM), a passively managed exchange traded fund launched on May 22, 2000.The fund is sponsored by Blackrock. It has amassed assets over $71.38 billion, making it one of the largest ETFs attempting to match the Small Cap Blend segment of the US equity market.Why Small Cap BlendSmall cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities. CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.Annual operating expenses for this ETF are 0.19%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.29%.Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.This ETF has heaviest allocation to the Financials sector -- about 18.2% of the portfolio. Industrials and Information Technology round out the top three.Looking at individual holdings, Credo Technology Group Holding Ltd (CRDO) accounts for about 0.69% of total assets, followed by Fabrinet (FN) and Kratos Defense And Security Soluti (KTOS).The top 10 holdings account for about 4.02% of total assets under management.Performance and RiskIWM seeks to match the performance of the Russell 2000 Index before fees and expenses. The Russell 2000 Index measures the performance of the small capitalization sector of the U.S. equity market.The ETF return is roughly 11.58% so far this year and is up roughly 13.01% in the last one year (as of 09/19/2025). In the past 52-week period, it has traded between $174.82 and $244.84.The ETF has a beta of 1.13 and standard deviation of 21.9% for the trailing three-year period, making it a medium risk choice in the space. With about 1984 holdings, it effectively diversifies company-specific risk.AlternativesiShares Russell 2000 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWM is a great option for investors seeking exposure to the Style Box - Small Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well. The Vanguard Small-Cap ETF (VB) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While Vanguard Small-Cap ETF has $68.49 billion in assets, iShares Core S&P Small-Cap ETF has $87.25 billion. VB has an expense ratio of 0.05% and IJR charges 0.06%.Bottom-LineRetail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares Russell 2000 ETF (IWM): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks