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IWC - ETF AI Analysis

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IWC

iShares Micro-Cap ETF (IWC)

Rating:59Neutral
Price Target:
IWC, the iShares Micro-Cap ETF, has a middling overall rating because many of its largest holdings are smaller, financially challenged companies with high risk. While names like Praxis Precision Medicines and Cipher Mining add some upside potential through growth initiatives and positive momentum, several other key holdings such as Cogent Biosciences, Terns Pharmaceuticals, and Celcuity are weighed down by weak or nonexistent revenue, ongoing losses, and bearish trends. The main risk factor is the ETF’s heavy exposure to early-stage, unprofitable micro-cap and biotech names, which makes the fund more volatile and dependent on future turnarounds.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains so far this year and in recent months, indicating positive momentum in its micro-cap holdings.
Broad Sector Diversification
Holdings are spread across many sectors, including health care, financials, technology, and industrials, which helps reduce the impact of weakness in any single industry.
Multiple Strong Top Holdings
Several of the largest positions, such as Applied Digital, Energy Fuels, and Centrus Energy, have delivered strong year-to-date performance that supports the fund’s overall returns.
Negative Factors
High Expense Ratio
The fund’s expense ratio is relatively high for an ETF, which can eat into long-term returns compared with lower-cost options.
Heavy U.S. Concentration
With almost all assets in U.S. stocks, the ETF offers very limited geographic diversification and is highly tied to the U.S. market.
Micro-Cap and Sector Risk
The focus on very small companies and sizable exposure to more volatile areas like health care and energy can lead to larger price swings and higher risk.

IWC vs. SPDR S&P 500 ETF (SPY)

IWC Summary

The iShares Micro-Cap ETF (IWC) tracks the Russell Microcap Index, which focuses on very small U.S. companies across many sectors like health care, finance, and technology. Its holdings include lesser-known names such as Applied Digital Corporation and Cipher Mining, which are examples of early-stage, fast-changing businesses. Someone might invest in IWC to seek long-term growth and to diversify beyond large, well-known stocks by adding a wide basket of tiny companies. However, micro-cap stocks can be very volatile, so the ETF’s price can swing sharply and may drop more than the overall market.
How much will it cost me?The iShares Micro-Cap ETF (IWC) has an expense ratio of 0.6%, which means you’ll pay $6 per year for every $1,000 invested. This is higher than average because the fund is focused on micro-cap stocks, which require more active management compared to broad-market index funds. It reflects the specialized nature of the ETF and the effort involved in tracking smaller, less liquid companies.
What would affect this ETF?The iShares Micro-Cap ETF (IWC) could benefit from economic growth and innovation in sectors like healthcare and technology, which make up a significant portion of its holdings. However, it may face challenges from rising interest rates or economic slowdowns, which can disproportionately affect smaller companies with limited resources. Additionally, regulatory changes or sector-specific disruptions could impact the performance of its top holdings and overall micro-cap exposure.

IWC Top 10 Holdings

IWC is leaning heavily into tiny U.S. health-care and tech names, and that’s where the story really unfolds. Applied Optoelectronics has been a bright spot, rising sharply and giving the fund a welcome boost, while Terns Pharmaceuticals and Energy Fuels are also adding some steady upward pressure. On the flip side, biotech names like Praxis Precision Medicines and Cogent Biosciences have been lagging, acting as a brake on returns. With no single giant in charge, performance is driven by a volatile mix of micro-cap innovators rather than a few dominant stars.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Applied Optoelectronics1.72%$22.13M$10.02B1037.37%
52
Neutral
Praxis Precision Medicines1.62%$20.77M$8.92B1024.83%
58
Neutral
Applied Digital Corporation1.19%$15.27M$7.31B398.44%
54
Neutral
TeraWulf Inc1.15%$14.81M$8.07B749.55%
50
Neutral
Cogent Biosciences1.05%$13.43M$6.06B829.10%
37
Underperform
Cipher Mining1.04%$13.34M$6.63B636.94%
56
Neutral
Terns Pharmaceuticals0.99%$12.65M$6.07B2356.07%
45
Neutral
Celcuity0.86%$10.98M$6.02B1340.92%
44
Neutral
Energy Fuels0.84%$10.82M$4.43B383.38%
51
Neutral
Vistance Networks0.80%$10.27M$4.22B444.48%
60
Neutral

IWC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
164.84
Positive
100DMA
162.53
Positive
200DMA
152.17
Positive
Market Momentum
MACD
0.39
Negative
RSI
61.33
Neutral
STOCH
92.25
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IWC, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 161.13, equal to the 50-day MA of 164.84, and equal to the 200-day MA of 152.17, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 61.33 is Neutral, neither overbought nor oversold. The STOCH value of 92.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IWC.

IWC Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.27B0.60%
59
Neutral
$9.99B0.20%
76
Outperform
$9.91B0.68%
75
Outperform
$9.89B0.04%
74
Outperform
$9.72B0.25%
67
Neutral
$9.49B0.33%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IWC
iShares Micro-Cap ETF
170.24
69.33
68.70%
XLG
Invesco S&P 500 Top 50 ETF
QQQI
NEOS Nasdaq 100 High Income ETF
PBUS
Invesco PureBeta MSCI USA ETF
FNDA
Schwab Fundamental US Small Co. Index ETF
CGUS
Capital Group Core Equity ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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