iShares Russell 2000 Small-Cap Index Instl (IWN): An Investment for Growth-Oriented Investors

Introduction

iShares Russell 2000 Small-Cap Index Instl (IWN) is an exchange-traded fund (ETF) that tracks the Russell 2000 Index, a benchmark index of small-capitalization stocks in the United States. The fund provides investors with a convenient and cost-effective way to gain exposure to the small-cap market, which has historically outperformed the large-cap market over the long term.

Performance

Since its inception in 1995, IWN has delivered strong returns for investors. As of December 31, 2022, the fund has an annualized return of 10.9%, outperforming the S&P 500 Index, which has an annualized return of 10.2% over the same period.

Investment Strategy

IWN invests in a diversified portfolio of small-cap stocks, with the top sectors represented by consumer discretionary, healthcare, and industrials. The fund uses a passive investment strategy, meaning it simply tracks the Russell 2000 Index, without attempting to actively manage the portfolio.

Fees

IWN has a relatively low expense ratio of 0.19%, which means that only 19 cents of every $100 invested in the fund goes towards management fees. This makes IWN one of the most cost-effective ways to gain exposure to the small-cap market.

Benefits of Investing in IWN

There are several benefits to investing in IWN, including:

• Growth Potential: Small-cap companies have historically outperformed large-cap companies over the long term. IWN provides investors with a convenient and cost-effective way to gain exposure to this growth potential.
• Diversification: IWN invests in a diversified portfolio of small-cap stocks, which helps to reduce risk and enhance returns.
• Low Fees: IWN has a low expense ratio of 0.19%, making it one of the most cost-effective ETFs in the market.

Who Should Invest in IWN?

IWN is a suitable investment for investors who are:

• Growth-Oriented: Investors who are seeking long-term growth potential should consider investing in IWN.
• Long-Term Investors: IWN is a suitable investment for long-term investors who are willing to hold the fund through market fluctuations.
• Tolerant of Risk: Small-cap stocks are more volatile than large-cap stocks, so investors should be tolerant of risk before investing in IWN.

Alternative Investments

If IWN does not meet your investment needs, there are several alternative investments that you may consider, including:

• iShares Core S&P 500 ETF (IVV): This ETF tracks the S&P 500 Index, which is a benchmark index of large-cap stocks in the United States.
• Vanguard Total Stock Market ETF (VTI): This ETF tracks the entire U.S. stock market, providing investors with exposure to both large-cap and small-cap stocks.
• iShares MSCI Emerging Markets ETF (EEM): This ETF tracks the MSCI Emerging Markets Index, which is a benchmark index of stocks in emerging market countries.

Conclusion

iShares Russell 2000 Small-Cap Index Instl (IWN) is a compelling investment option for investors who are seeking long-term growth potential. The fund provides investors with a convenient and cost-effective way to gain exposure to the small-cap market, which has historically outperformed the large-cap market over the long term. If you are a growth-oriented investor with a tolerance for risk, IWN is worth considering for your investment portfolio.

FAQs

1. What is the expense ratio of IWN?

IWN has an expense ratio of 0.19%.

2. What is the tracking error of IWN?

The tracking error of IWN is 0.04%.

3. What is the beta of IWN?

The beta of IWN is 1.21, which means that the fund is slightly more volatile than the S&P 500 Index.

4. What is the dividend yield of IWN?

The dividend yield of IWN is 1.42%.

5. What is the average daily volume of IWN?

The average daily volume of IWN is 13 million shares.

6. What is the minimum investment amount for IWN?

The minimum investment amount for IWN is $50.

7. What is the best time to buy IWN?