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 $11.20 billion, making it one of the largest ETFs attempting to match the Small Cap Value segment of the US equity market.Why Small Cap ValueThere's a lot of potential to investing in small cap companies, but with market capitalization below $2 billion, that high potential comes with even higher risk.While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.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 2.23%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. 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 30.30% of the portfolio. Industrials and Real Estate round out the top three.Looking at individual holdings, Southstate Corp (SSB) accounts for about 0.75% of total assets, followed by Umb Financial Corp (UMBF) and Old National Bancorp (ONB).The top 10 holdings account for about 5.38% 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 lost about -5.26% so far this year and is up about 4.19% in the last one year (as of 03/20/2025). In the past 52-week period, it has traded between $146.03 and $181.35.The ETF has a beta of 1.17 and standard deviation of 21.69% for the trailing three-year period, making it a medium risk choice in the space. With about 1425 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 a great 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 $14.79 billion in assets, Vanguard Small-Cap Value ETF has $29.86 billion. AVUV has an expense ratio of 0.25% and VBR charges 0.07%.Bottom-LineWhile an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.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 UMB Financial Corporation (UMBF): Free Stock Analysis Report 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 ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks