IShares Russell 3000 ETF IWV combines a broadly diversified portfolio of U.S. stocks with low turnover and a competitive expense ratio, providing it with a durable edge over its average peer. However, there are cheaper alternatives available. It earns a Morningstar Analyst Rating of Bronze. 

The fund tracks the Russell 3000 Index, which sweeps in the largest 3,000 U.S. stocks, constituting around 96% of the investable U.S. equity market. After applying liquidity and size screens, the index weights stocks by their market cap. 

The index sweeps in small and micro-caps, which slightly improves the portfolio’s overall diversification, albeit they tend to be more volatile than mid- and large-cap stocks. However, they make up less than 10% of the portfolio.   

Broad market indexes mitigate transaction costs because they don’t target specific segments of the market and aren’t prone to forced buying or selling as stocks enter or exist a market segment. However, this index does not implement buffer rules around its lower market-cap bound to limit unnecessary turnover. Buying and selling thinly traded small and micro-caps increases transaction costs compared with similar funds tracking broad market indexes. 

The largest U.S. stocks attract liquidity and widespread attention, such that new information is quickly reflected in their prices. Market-cap weighting is a sensible approach here. It harnesses the market’s collective wisdom of the relative value of each holding with the added benefit of low turnover and associated trading costs. 

However, market-cap weighting may expose the index to significant stock- or sector-level concentration during the market’s intermittent manic episodes. This can tilt the portfolio toward richly valued names or sectors, as was the case during the post-lockdown rally in 2020. In the long run, the benefits of broad diversification, low turnover, and a low fee outweigh these drawbacks.

Analyst Rating

Decent option for diversified exposure to U.S stocks of all sizes

Associate Analyst

Mo'ath Almahasneh

Apple

Microsoft

Amazon

NVIDIA

Alphabet

Tesla

Berkshire Hathaway Inc. - Ordinary Shares - Class B

UnitedHealth Group

This broadly diversified portfolio is representative of the entire investable U.S. equity market. It relies on the market’s collective wisdom to size its positions, but it does not implement buffer rules to control turnover and transaction costs among the smaller stocks it holds. It earns an Above Average Process Pillar rating.

Above Average

Process

BlackRock's industry-leading technology, global footprint, and extensive supporting cast earn an Above Average People Pillar rating. The team employs BlackRock's Aladdin platform to fulfill much of its portfolio management tasks, and global trading desks allow traders to conduct foreign transactions in a cost-effective way.

The iShares team has endured had some turnover over the past few in recent years. But index-tracking performance should remain tight, thanks to heavily automated processes and several long-tenured managers that remain at the helm. Amy Whitelaw left the team in February 2023 for another role within the organization. Rachel Aguirre left the team in March 2021 after she was promoted to iShares head of product engineering. Paul Whitehead replaced Alan Mason as a manager in January 2022, when Mason left to focus on the firm's customized institutional indexing capabilities. IShares has yet to name a successor for Whitelaw, but they will join a seasoned group in Greg Savage and Jennifer Hsui, who will continue to oversee this fund and have helped manage iShares ETFs since the early 2000s.

These managers interact with a wider team of traders and managers around the globe to execute the fund's day-to-day operations. The larger number of managers also limits the impact of personnel turnover when it does occur. A portion of their compensation is tethered to index-tracking performance, which aligns manager interests with those of the fund's investors.

People

BlackRock offers compelling options across asset classes and vehicles. It earns an Above Average rating for Parent. 
The firm’s approximately USD 8 trillion in assets under management, as of Sept. 30, 2022, gives it unparalleled scale and influence. It is a market-leading index fund provider globally, and its iShares exchange-traded fund franchise offers a low-cost lineup of core funds that investors can use to build a well-diversified portfolio for dirt cheap. The firm can be more adventurous in its ETF launches than some peers, so not everything it launches is appropriate for the masses. As a result, it is likely to have more ETF closures than peers that stick to the basic building blocks.  
The firm’s active fixed-income and multi-asset efforts also stand out as some of the best in the industry. Those benefit from BlackRock’s commitment to building a first-class risk management system via its Aladdin analytics software. The software is also available for sale to other firms and has proved to be a popular option for competitors, a testament to its usefulness. 
More recently, the firm has shifted its focus to ESG offerings and incorporating ESG across its investment lineup, leading to a political backlash in the United States.
BlackRock isn’t the best at everything it tries to do, but retail investors, financial advisors, and large institutions could all build robust portfolios using BlackRock’s products.

Parent

iShares Russell 3000 ETF

IWV tracks a cap-weighted index that measures the investable US equities market, covering the entire market-cap spectrum, including micro-caps.

iShares Russell 3000 ETF offers exposure to a wide range of U.S. companies, making it a suitable investment for long-term growth. The IWV ETF is largely driven by the same large-cap stocks that drive the S&P 500, including Apple, Microsoft, Amazon, Nvidia, and Alphabet. IWV has a high expense ratio compared to its peers, but it provides diversification and has historically shown strong price growth.

IWV: Perhaps A Better Core Equity Allocation Now

Dimensional US Core Equity 2 ETF

iShares Russell 3000 ETF and Dimensional U.S. Core Equity 2 ETF are two ETFs centered around the Russell 3000 Index. iShares Russell 3000 ETF takes a passive strategy, while Dimensional U.S. Core Equity 2 ETF follows an active strategy. Both ETFs are reviewed and then compared. That shows both ETFs, despite the strategy differences have similar allocations and performance results.

DFAC Vs. IWV: Two R3000 Index Strategies Compared

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Investors were net purchasers of fund assets for the second consecutive week, injecting a net $19.2 billion for the LSEG Lipper fund-flows week ended June 14. Equity ETFs witnessed net inflows for the third week in four, attracting a little more than $25.2 billion for the most recent fund-flows week. For the second week in a row, taxable fixed income ETFs experienced net inflows, taking in $4.4 billion this week.

U.S. Weekly FundFlows Insight Report: Nondomestic Equity ETFs Attract Their Largest Weekly Net Inflows On Record During The Fund-Flows Week

iShares Russell 3000 ETF has been able to match the returns of the S&P 500 Index over the years. It was successful in achieving double-digit price growth over the past one year. IWV's price multiples have come down compared to the same time almost a year ago. I was concerned about overvaluation, which is not the case this time. All 20 of IWV's top investments in technology-focused stocks have generated positive price growth during the past year, and mostly in excess of 20 percent.

IWV: Successfully Met Expectations, Valuation Is Also Down

SPDR S&P 500 ETF Trust

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The iShares Russell 3000 ETF, as the name implies, uses the Russell 3000 Total Market Index as its investment strategy. The article will review that Index and the ETF in detail. Some comparisons to other Total Market ETFs are provided in the Portfolio Strategy section.

IWV: For Total U.S. Market Exposure, There Are Better Choices

iShares Russell 3000 ETF has a portfolio of about 3,000 largest U.S. stocks. The IWV exchange-traded fund is a good representation of the broader market.

IWV Is Still Expensive Despite The Decline Last Year

iShares U.S. Utilities ETF

IDU and IWV saw massive trading volumes in yesterday session.

Utilities and Large-Cap: 2 ETFs to Watch for Outsized Volume

Fidelity MSCI Materials Index ETF

IWV and FMAT saw massive trading volumes in yesterday trading session.

Value and Materials: 2 ETFs to Watch for Outsized Volume

The Labor Department reported another strong payrolls gain in August, but cooler than July's hot report. The unemployment rate ticked up to 3.7%.

IWV: Stocks Jump Following A Cooler Monthly Jobs Gain

IWV generated price growth between 15 to 30 percent over the past 10 years.

IWV: Great Way To Invest In The Entire U.S. Equity Market

iShares MSCI ACWI ETF

Bank of America

Charter Communications

WisdomTree Emerging Markets High Dividend Fund

WisdomTree Global High Dividend Fund

WisdomTree U.S. High Dividend Fund

WisdomTree International High Dividend Fund

iShares MSCI Emerging Markets ETF

iShares MSCI EAFE ETF

General Electric

Home Depot

iShares Russell Top 200 ETF

JPMorgan Chase & Co

Procter & Gamble

iShares MSCI EAFE Small-Cap ETF

Walmart

More than $14 billion has flown into dividend-focused ETFs in the first two months of the year, compared to less than $2 billion over the same period in 2021.

February Dividend Update: Outperformance Continues

IWV is a $12.5 billion fund with an equity blend that is supposed to encompass all the echelons of the U.S. market tracked by the Russell 3000 index.IWV has a top-heaviness problem, with factor and sector exposure similar to IVV, ITOT, SCHB.

IWV: Another Top-Heavy Way To Invest In The Entire U.S. Market

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This U.S. broad market ETF hits a new 52-week high. Are more gains in store for this ETF?

U.S. Broad Market ETF (IWV) Hits New 52-Week High

iShares S&P 500 Value ETF

The "value" proposition still holds: Since November, the return on a basket of value stocks totals 53% compared with only 11% for the S&P 500.

News for iShares Russell 3000 ETF ETF (IWV)