RUSSELL 2000 (LONG ONLY)
IWM is an exchange-traded fund (ETF) managed by iShares that tracks the performance of the Russell 2000 index, which is composed of small-capitalization U.S. equities. The investment objective of IWM is to seek to track the investment results of an index composed of small-capitalization U.S. equities.
Small-cap companies are generally defined as those with a market capitalization between $300 million and $2 billion. These companies are often in the early stages of growth and have the potential for significant expansion, but they also carry higher risk than larger, more established companies.
IWM provides investors with exposure to small-cap U.S. equities in a single fund, making it a convenient and efficient way to invest in this asset class. The ETF holds the same stocks that make up the Russell 2000 index and is designed to provide investors with long-term growth potential through the performance of the small-cap U.S. stock market.
Investors who are looking to diversify their U.S. stock allocation may consider investing in IWM. Small-cap stocks are often considered to have higher growth potential than large-cap stocks, but they also carry higher risk. Therefore, investors should carefully consider their investment objectives, risk tolerance, and investment horizon before investing in IWM.
Overall, IWM is a useful tool for investors who are looking for exposure to small-cap U.S. equities in a single fund. As with any investment, it’s important to do your research and understand the risks and potential rewards before investing in IWM or any other ETF.