IWM vs. IJR: Two Small-Cap ETFs That Look Very Different

分组1 - Small caps have outperformed large caps by approximately 4% in 2026, despite some volatility in March [1] - The long underperformance of small caps relative to the S&P 500 suggests they may be poised for an extended run, supported by improved earnings outlook and attractive valuations [2] - The majority of small cap ETFs include "small cap" in their names, but they may not be interchangeable due to differences in their underlying portfolios [3] 分组2 - The iShares Russell 2000 ETF and the iShares Core S&P Small Cap ETF are two prominent small cap ETFs that track different indexes, leading to significant differences in their portfolios [4][5] - The iShares Russell 2000 ETF includes the 2,000 largest stocks after the Russell 1000, while the iShares Core S&P Small Cap ETF tracks the 600 stocks following the S&P 500 and S&P 400 Mid Cap indexes [5] - The Russell 2000 ETF offers a broad exposure to the small cap universe but includes a substantial number of unprofitable companies, with approximately 40% of its components currently unprofitable [8]