iShares Russell 2000 Growth ETF: A Guide for Investors

The iShares Russell 2000 Growth ETF (IWO) is a passively managed exchange-traded fund that offers investors exposure to the small-cap growth segment of the U.S. equity market.

Investment Objective

The fund's investment objective is to track the performance of the Russell 2000 Growth Index, which measures the performance of approximately 1,500 small-cap growth stocks.

Index Characteristics

Fund Characteristics

| Fund | Ticker | Inception Date | Net Assets | Expense Ratio |
|---|---|---|---|
| iShares Russell 2000 Growth ETF | IWO | January 27, 1999 | $13.6 billion | 0.24% |

Performance and Risk

Note: Performance figures are as of March 31, 2023. Past performance is not indicative of future results.

Sector Allocation

The fund has significant exposure to the technology, healthcare, and consumer discretionary sectors.

Top 10 Holdings

Advantages

• Growth Potential: The fund offers exposure to a portfolio of small-cap growth stocks that have the potential to generate significant returns over the long term.
• Diversification: The fund's diversification across various sectors and industries helps to mitigate risk.
• Low Cost: The fund's expense ratio of 0.24% is relatively low, which means that investors keep more of their returns.

Drawbacks

• Volatility: The fund's exposure to small-cap stocks makes it more volatile than funds that invest in larger companies.
• Sector Concentration: The fund's significant exposure to the technology and healthcare sectors could lead to underperformance if these sectors decline.

Considerations for Investors

IWO is a suitable investment for investors with the following goals and risk tolerance:

• Long-Term Goals: The fund is best suited for investors with long-term investment horizons of at least five years.
• Growth Objectives: IWO offers exposure to the growth segment of the U.S. equity market, which is suitable for investors seeking potential capital appreciation.
• Moderate Risk Tolerance: The fund's moderate level of volatility makes it appropriate for investors with a moderate risk tolerance.

Investors should carefully consider their investment objectives, risk tolerance, and time horizon before investing in IWO.

Tips and Tricks

• Dollar-Cost Averaging: To reduce the impact of market volatility, investors can adopt a dollar-cost averaging strategy, which involves investing a fixed amount of money in IWO at regular intervals.
• Rebalance Regularly: To maintain the desired portfolio allocation, investors should periodically rebalance their portfolio by selling or buying shares of IWO as needed.
• Tax Optimization: IWO is a tax-efficient investment as it distributes qualified dividends, which are taxed at a lower rate than ordinary income.

Step-by-Step Approach to Investing in IWO

1. Open a Brokerage Account: Choose a reputable broker-dealer that offers access to IWO.
2. Conduct Research: Understand the fund's investment objectives, risk profile, and fees before investing.
3. Determine Your Investment Strategy: Establish your investment goals, risk tolerance, and time horizon.
4. Place an Order: Contact your broker-dealer to execute an order to purchase shares of IWO.
5. Monitor Your Investment: Regularly review the fund's performance and make adjustments as necessary.

Useful Tables

Table 1: Historical Returns

Table 2: Sector Exposure

Table 3: Top 10 Holdings

Table 4: Key Fund Metrics

| Metric | Value |