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

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 July 24, 2000.The fund is sponsored by Blackrock. It has amassed assets over $12.04 billion, making it one of the largest ETFs attempting to match the Small Cap Value segment of the US equity market.Why Small Cap ValueSmall cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets. CostsWhen considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.Annual operating expenses for this ETF are 0.24%, making it one of the cheaper products in the space.It has a 12-month trailing dividend yield of 2.1%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Financials sector -- about 26.5% of the portfolio. Industrials and Consumer Discretionary round out the top three.Looking at individual holdings, Echostar Corp Class A (SATS) accounts for about 0.81% of total assets, followed by Umb Financial Corp (UMBF) and Taylor Morrison Home Corp (TMHC).The top 10 holdings account for about 5.38% of total assets under management.Performance and RiskIWN seeks to match the performance of the Russell 2000 Value Index before fees and expenses. The Russell 2000 Value Index measures the performance of the small-capitalization value sector of the U.S. equity market.The ETF return is roughly 9.25% so far this year and is up roughly 8.1% in the last one year (as of 09/24/2025). In the past 52-week period, it has traded between $131.84 and $181.35.The ETF has a beta of 1.09 and standard deviation of 21.55% for the trailing three-year period, making it a medium risk choice in the space. With about 1420 holdings, it effectively diversifies company-specific risk.AlternativesiShares Russell 2000 Value 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, IWN is a great option for investors seeking exposure to the Style Box - Small Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well. The Schwab Fundamental U.S. Small Company ETF (FNDA) and the Vanguard Small-Cap Value ETF (VBR) track a similar index. While Schwab Fundamental U.S. Small Company ETF has $9.30 billion in assets, Vanguard Small-Cap Value ETF has $31.65 billion. FNDA has an expense ratio of 0.25% and VBR charges 0.07%.Bottom-LineAn increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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 Value ETF (IWN): 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