iShares Russell 2000 Growth Index ETF: A Path to Small-Cap Growth Potential

Navigating the World of Small-Cap Growth Investing

The iShares Russell 2000 Growth Index ETF (IWO) offers investors a diversified exposure to the growth-oriented segment of the small-cap market. This ETF tracks the Russell 2000 Growth Index, which measures the performance of the 1,000 smallest companies in the Russell 2000 Index.

Unlocking the Potential of Small-Cap Growth Stocks

Small-cap growth stocks have historically outperformed their larger counterparts over the long term. According to a study by the Small Cap Research Group, small-cap growth stocks returned an average of 12.1% annually over the past 20 years, compared to 9.8% for large-cap growth stocks.

Key Features of the iShares Russell 2000 Growth Index ETF

• Low Expense Ratio: IWO has an expense ratio of just 0.20%, making it one of the most cost-effective ways to invest in small-cap growth.
• Diversified Exposure: With over 1,000 holdings, IWO provides investors with broad exposure to the small-cap growth market.
• Sector Exposure: IWO's holdings are concentrated in sectors such as technology, healthcare, and consumer discretionary, which have historically exhibited strong growth potential.

Investing with iShares Russell 2000 Growth Index ETF

IWO is suitable for investors with a long-term investment horizon and a tolerance for higher volatility. It can be used as a core holding in a diversified portfolio or as a satellite investment to enhance growth potential.

Top 10 Holdings of iShares Russell 2000 Growth Index ETF

Risks and Considerations

Investing in IWO involves the following risks:

• Market Risk: IWO's value can fluctuate with the overall stock market.
• Small-Cap Risk: Small-cap stocks are typically more volatile than larger-cap stocks.
• Growth Stock Risk: Growth stocks can be susceptible to downturns during periods of economic uncertainty.

FAQs about iShares Russell 2000 Growth Index ETF

Q1: What is the minimum investment amount for IWO?
A1: There is no minimum investment amount for IWO.

Q2: What is the dividend yield of IWO?
A2: IWO's dividend yield is typically around 1.0%.

Q3: Can I invest in IWO through a retirement account?
A3: Yes, IWO can be held in most retirement accounts, such as IRAs and 401(k)s.

Q4: What is the best way to invest in IWO?
A4: The best way to invest in IWO is through a long-term investment strategy that considers your risk tolerance and investment goals.

Q5: How often does the Russell 2000 Growth Index get rebalanced?
A5: The Russell 2000 Growth Index is rebalanced on a semi-annual basis.

Q6: What is the difference between an index fund and an ETF?
A6: Index funds are passively managed funds that track a specific index, while ETFs are actively traded funds that trade on an exchange like stocks.

Q7: What is the difference between a growth stock and a value stock?
A7: Growth stocks are stocks of companies that are expected to experience above-average growth in the future, while value stocks are stocks of companies that are trading below their intrinsic value.

Q8: What is the best way to research IWO?
A8: You can research IWO by visiting the iShares website, reading articles about the fund, and consulting financial advisors.