IWN vs. SLYV: Sector Allocations Make the Difference

Core Insights - The article compares two small-cap value ETFs: SLYV, which tracks the S&P SmallCap 600 Value Index, and IWN, which tracks the Russell 2000 Value Index, highlighting their differences in sector allocation, portfolio breadth, and performance [4][5]. Fund Overview - SLYV holds 454 companies with a sector tilt towards financial services (23%), consumer cyclicals (16%), and industrials (15%), with top holdings including Borgwarner, Hecla Mining, and Lincoln National [1]. - IWN has a broader portfolio of 1,407 stocks, primarily focused on financial services (27%), industrials (13%), and healthcare (11%), with top positions including Blk Csh Fnd Treasury Sl Agency, Echostar, and Hecla Mining [2]. Performance and Fees - SLYV is noted for its lower expense ratio and higher dividend yield compared to IWN, which charges 0.09 percentage points more annually [3][6]. - Over the past year, IWN has outperformed SLYV with a return of 13.4% versus 6.4%, although both funds perform comparably over the long term [6]. Sector Allocation - Both funds allocate the largest portion to financials, but SLYV has a more balanced distribution among consumer discretionary, industrials, and information technology, while IWN has healthcare as its third-largest sector [7]. - Investors seeking more healthcare exposure may prefer IWN, whereas those looking for more technology stocks may favor SLYV [7]. Individual Holdings - A notable difference in individual holdings is that IWN's largest holding is a money market fund, constituting 1% of the fund, contrasting with SLYV, which has stocks as its top ten holdings [8].