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

Designed to provide broad exposure to the Small Cap Value segment of the US equity market, the iShares Russell 2000 Value ETF (IWN) is a passively managed exchange traded fund launched on 07/24/2000.The fund is sponsored by Blackrock. It has amassed assets over $12.37 billion, making it one of the largest ETFs attempting to match the Small Cap Value segment of the US equity market.Why Small Cap ValueSmall cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.CostsSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for this ETF are 0.24%, making it one of the cheaper products in the space.It has a 12-month trailing dividend yield of 1.78%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Financials sector--about 29.20% of the portfolio. Industrials and Real Estate round out the top three.Looking at individual holdings, Southstate Corp (SSB) accounts for about 0.73% of total assets, followed by Jackson Financial Inc Class A (JXN) and Old National Bancorp (ONB).The top 10 holdings account for about 4.87% of total assets under management.Performance and RiskIWN seeks to match the performance of the Russell 2000 Value Index before fees and expenses. The Russell 2000 Value Index measures the performance of the small-capitalization value sector of the U.S. equity market.The ETF has added about 1.35% so far this year and is up about 13.43% in the last one year (as of 01/16/2025). In the past 52-week period, it has traded between $145.61 and $181.35.The ETF has a beta of 1.16 and standard deviation of 22.02% for the trailing three-year period, making it a medium risk choice in the space. With about 1441 holdings, it effectively diversifies company-specific risk.AlternativesIShares Russell 2000 Value ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWN is an outstanding option for investors seeking exposure to the Style Box - Small Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.The Avantis U.S. Small Cap Value ETF (AVUV) and the Vanguard Small-Cap Value ETF (VBR) track a similar index. While Avantis U.S. Small Cap Value ETF has $15.75 billion in assets, Vanguard Small-Cap Value ETF has $31.81 billion. AVUV has an expense ratio of 0.25% and VBR charges 0.07%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares Russell 2000 Value ETF (IWN): ETF Research Reports Old National Bancorp (ONB): Free Stock Analysis Report Vanguard Small-Cap Value ETF (VBR): ETF Research Reports SouthState Corporation (SSB): Free Stock Analysis Report Avantis U.S. Small Cap Value ETF (AVUV): ETF Research Reports Jackson Financial Inc. (JXN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks