#5 - iShares Russell 2000 ETF (NYSEARCA:IWM)
Diversity within stocks is about more than owning stocks in different sectors. You should also diversify the size of the companies you own. That’s a reason to consider adding the iShares Russell 2000 ETF (NYSEARCA: IWM) to your portfolio. The fund broadly tracks the performance of the Russell 2000 Index, which is generally referred to as the small-cap index.
Small-cap stocks can be volatile and have a negative correlation with interest rates. You may remember it was challenging to own small-cap stocks when the Federal Reserve was raising interest rates in 2022 and 2023. But, in the five years ending February 2025, the fund delivered a total return of around 50%.
The IWM ETF helps smooth out market volatility by providing broad exposure to a variety of sectors. No sector accounts for more than 10% of the fund's weighting, and no individual holding accounts for more than 0.5% of the fund. IWM has $71.9 billion of assets under management and an expense ratio of 0.19%.
About iShares Russell 2000 ETF
iShares Russell 2000 ETF (the Fund) is an exchange-traded fund. The Fund seeks investment results that correspond generally to the price and yield performance of the Russell 2000 Index (the Index). The Index is a float-adjusted capitalization weighted index that measures the performance of the small-capitalization sector of the United States equity market and includes securities issued by the approximately 2,000 smallest issuers in the Russell 3000 Index.
More about iShares Russell 2000 ETF- Current Price
- $202.24
- Asset Class
- Equity
- Fund AUM
- $71.90 billion
- Expense Ratio
- 0.19%
- 6-Month Performance
- -2.92%
- 1-Year Performance
- -2.22%
