FTAI Aviation Ltd

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iShares Russell 2000 ETF

IWM tracks a market-cap-weighted index of US small-cap stocks. The index selects stocks ranked 1,001-3,000 by market cap.

If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the iShares Russell 2000 ETF (IWM), a passively managed exchange traded fund launched on 05/22/2000.

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

Despite the gap between small and large caps widening slightly since my last article discussing their trajectory, I believe that the trade is still on. Small caps are losing volatility and grinding slowly upwards, a good sign for a potential for a breakout. Breaking out may require positive data from the Fed and the economy overall.

IWM: Small Caps Are Still In Play Against Large Caps

Many small-cap stocks have delivered solid returns in 2024, but the benchmark Russell 2000 index is still trading in bear territory.

1 Spectacular BlackRock ETF to Buy Ahead of the Russell 2000 Bull Market

Apple

SPDR Gold Trust

SPDR S&P Regional Banking ETF

Lockheed Martin

NVIDIA

Occidental Petroleum

iShares 20+ Year Treasury Bond ETF

As the new financial quarter gets underway, investors should start paying attention to the different price action themes across asset classes today. While far from the ultimate gauge to predict future themes, these trends and divergences can help develop reasonable scenarios for the economy moving forward.

Inflation Trades Gain Momentum: What Investors Should Watch

IWM is approaching the 2024 high and has a good chance of continuing higher. A strong economy and an aggressive Fed cutting cycle would be ideal for IWM, but they are not mutually exclusive. It may be better off with neither. The current backdrop is generally positive. A slow but stable economy and slow easing cycle from the Fed should lead to a slow but steady rally.

IWM: Small Caps Can Target New Highs

Global X Russell 2000 Covered Call ETF

Small cap companies have underperformed their large-cap peers in the past few years as most of them have struggled in a high-interest-rate environment. For example, the S&P 500 index and the Nasdaq 100 have had total returns of over 72% in the last five years, while the Russell 2000 index has returned 57.

RYLD yields 12%, IWM 1.1%: which is the better Russel 2000 ETF?

Avantis U.S. Small Cap Value ETF

SPDR Portfolio Small Cap ETF

Avoid the most popular small-cap ETF and focus more on quality businesses with these two picks.

Small-Cap Stocks Could Rally in 2025, and These 2 ETFs Are the Best Way to Take Advantage.

The recent rally in the S&P 500, which hit its 45th record close of 2024, is more inclusive than in previous months. While banks and financials have led this broader market rise, small caps are also catching the attention of analysts.

It may be a good time to buy small-cap stocks, strategist explains how to play the trade

The small-cap exchange-traded fund (ETF) iShares Russell 2000 ETF (IWM) is up 1.6% to trade at $220.43 today, likely taking cues from the flat producer price index (PPI) that is calming investors worried about interest rate cuts.

Small-Cap ETF at a Technical Crossroads

As interest rates keep moving lower from here, it makes sense to diversify your portfolio beyond the market's biggest and brightest.

Russell 2000 ETF: A Solid Bet on Small-Cap Breakouts

Adams Diversified Equity Fund

JPMorgan Equity Premium Income ETF

SPDR S&P 500 ETF Trust

Income investors often favor value investments like midstream infrastructure, equity REITs, and blue-chip cash cows for yields between 5% to 8%. Long-term alpha-like returns are unlikely with these assets, but they offer stable income streams that are suitable for defensive retirement portfolios. Some investors might, however, want to combine high yield with growth-like exposure.

2 Picks For High-Yield Investors Who Seek Growth-Like Exposure

Since small-cap stocks are more domestically-focused, an improving US economy and a dovish Fed are tailwinds for small-cap stocks and ETFs.

4 Reasons to Buy Small-Cap ETFs Now

JPMorgan BetaBuilders U.S. Small Cap Equity ETF

iShares Morningstar Small-Cap Growth ETF

Vanguard Small-Cap ETF

Vanguard Small-Cap Growth

Small caps tend to outperform as falling borrowing costs are a tailwind. These companies rely more on debt than their larger-cap peers.

Small-Cap ETFs Set to Outperform After Fed Rate Cuts

The Fed is about to cut its benchmark policy rate for the first time in more than four years.

All Eyes on Fed Decision: Will Small-Caps Finally Take the Baton?

SPDR Dow Jones Industrial Average ETF

Invesco QQQ

Though Fed decision days are often overhyped, this time is different. The market context and uncertainty surrounding the Fed's decision should produce fireworks later today and into the end of the month.

Fed Day: 5 Things Investors Need to Know for FOMC Meeting

iShares U.S. Home Construction ETF

Vanguard Real Estate ETF

Consumer Discretionary Select Sector SPDR Fund

VNQ, ITB, XLY, IWM and GLD are included in this Analyst Blog.

The Zacks Analyst Blog VNQ, ITB, XLY, IWM and GLD

The Fed is scheduled for the first rate cut since 2020 in its meeting this week. Lower rates stimulate economic growth and provide a boost to the stock market.

5 ETF Zones Set to Benefit When Fed Initiates Rate Cuts

The market is focused on downside risks in the labor market despite a stronger-than-expected inflation report, which beat consensus mainly in core metrics. Growth remains strong, inflation is cooling, and the labor market is moderating, supporting the narrative for a soft landing.

IWM: Sentiment And Surprise Indicators Signal Better Returns, Inflation Fears Fade

iShares Silver Trust

Investors may be shaken up by the recent volatility in the stock market, and now more than ever, it is important to stick to fundamentals and attempt to understand how and where money will begin to shift in the next quarter or two. Ideally, investors can get on these trends before they take on momentum during the whole market shift, where a few asset classes come to mind.

How the Fed's Rate Cuts Could Boost Bonds, Silver, and Small Caps

Chipmaker Nvidia has been the best-performing stock in the S&P 500 since January 2023. The Russell 2000 tracks small-cap companies that account for 5% of U.S. stocks by market value.

Billionaires Are Selling Nvidia Stock and Buying an Index Fund That Could Soar 43%, According to a Wall Street Analyst

Invesco S&P 500 Equal Weight ETF

Because of how it's structured, the S&P 500 index is increasingly reliant on just a few companies for its performance. Economic indicators suggest some ETFs out there could outperform the S&P 500.

Before You Buy the Vanguard S&P 500 ETF, Here Are 3 ETFs I'd Buy First

Small-caps performance lags behind large-caps, historically cheap valuations. Reasons for small-caps lagging behind include weaker company quality, high interest rates, and decreased M&A activity. Analysts predict a positive outlook for small-caps, with expected earnings growth and potential outperformance in the next 18 months.

Small Caps Rebound Is Finally Coming - Time To Buy IWM

iShares Core S&P Small Cap ETF

Large-Cap stocks have powered ahead to the point where small-caps now offer a higher dividend yield. The small-cap space is most commonly associated with the iShares Russell 2000 ETF. Declining borrowing rates should benefit small companies to an outsized degree, especially given their reliance on bank debt.

Small Caps Yielding Higher, Positioned Better For Declining Rates

Small caps historically perform well after Fed rate cuts, with potential for outperformance against large caps. Optimism among small business owners and improving economic conditions could benefit IWM in the coming quarters. Despite near-term bearish risks and weak sentiment, IWM's valuation, technical indicators, and profit growth forecasts suggest a favorable outlook.

IWM Bullish Triple Play: Low Valuation, Soft Sentiment, Positive Chart

iShares MSCI China Small-Cap ETF

iShares MSCI United Kingdom Small Cap ETF

iShares MSCI Brazil Small-Cap ETF

iShares MSCI Europe Small-Cap ETF

iShares MSCI Japan Small-Cap ETF

iShares MSCI India Small Cap ETF

India small-caps only recently took the lead on the US, with a big jump higher over the last 18 months or so. Small-caps in other countries have been poor options for US investors relative to owning something like the S&P 500 ETF.

News for iShares Russell 2000 ETF ETF (IWM)