IWM News & Analysis
2 articles
Market Mood
Small-Cap Premium Hasn't Beat Large Caps in 15 Years
The iShares Russell 2000 ETF (IWM) has returned 490% since the Vanguard S&P 500 ETF (VOO) launched in 2010 with an 830% gain. Approximately 40% of Russell 2000 components are currently unprofitable, impacting small-cap stock performance amid rising interest rates. However, small-cap earnings are projected to grow by 18% in both 2026 and 2027, which may exceed the S&P 500's earnings growth for the first time in years. This shift in earnings growth expectations could interest investors considering small-cap stocks as a potential opportunity.
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Comparing IWM and IJR: Distinct Strategies in Small-Cap ETFs
The article analyzes two small-cap exchange-traded funds (ETFs), IWM and IJR, highlighting their differing strategies and performance metrics. IWM tracks the Russell 2000 index, while IJR follows a smaller subset of small-cap stocks. This divergence poses implications for investors considering exposure to smaller companies, particularly in the current market environment. Understanding these differences is crucial for portfolio diversification and risk management, especially as economic conditions continue to evolve.
Read More: Comparing IWM and IJR: Distinct Strategies in Small-Cap ETFs