Should iShares Russell 2000 Value ETF (IWN) Be on Your Investing Radar?

Core Insights - The iShares Russell 2000 Value ETF (IWN) is a passively managed fund aimed at providing broad exposure to the Small Cap Value segment of the US equity market, with assets exceeding $10.95 billion, making it one of the largest ETFs in this category [1] Investment Potential - Small cap companies, defined as those with market capitalizations below $2 billion, present significant investment potential but also come with higher risks [2] - Value stocks typically have lower price-to-earnings and price-to-book ratios, and while they have lower sales and earnings growth rates, they have historically outperformed growth stocks in most markets, although they may underperform in strong bull markets [3] Cost Structure - The annual operating expenses for IWN are 0.24%, positioning it as one of the cheaper options in the ETF space, with a 12-month trailing dividend yield of 1.78% [4] Sector Allocation - The ETF has a significant allocation to the Financials sector, comprising approximately 30.30% of the portfolio, followed by Industrials and Real Estate [5] - The top 10 holdings account for about 5.26% of total assets, with Southstate Corp (SSB) making up around 0.71% of total assets [6] Performance Metrics - IWN aims to match the performance of the Russell 2000 Value Index, having gained about 0.22% year-to-date and approximately 0.31% over the past year as of July 21, 2025, with a trading range between $131.84 and $181.35 in the past 52 weeks [7] - The ETF has a beta of 1.07 and a standard deviation of 21.83% over the trailing three-year period, indicating a medium risk profile [8] Competitive Landscape - IWN holds a Zacks ETF Rank of 2 (Buy), indicating strong expected returns based on various factors, making it a compelling option for investors interested in the Small Cap Value segment [9] - Other alternatives include the Schwab Fundamental U.S. Small Company ETF (FNDA) with $8.49 billion in assets and an expense ratio of 0.25%, and the Vanguard Small-Cap Value ETF (VBR) with $30.17 billion in assets and a lower expense ratio of 0.07% [10] Conclusion - Passively managed ETFs like IWN are increasingly favored by both retail and institutional investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [11]