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IWM - ETF AI Analysis

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IWM

iShares Russell 2000 ETF (IWM)

Rating:65Neutral
Price Target:
IWM, the iShares Russell 2000 ETF, has a solid overall rating that reflects a mix of strong growth stories and some weaker names among its small-cap holdings. Standout contributors like Fabrinet, NEXTracker, Credo Technology Group, and Sterling Infrastructure support the fund’s quality through robust financial performance, positive earnings calls, and clear growth initiatives, while weaker holdings such as Echostar and BridgeBio Pharma, with their financial and valuation challenges, likely weigh on the rating. The main risk factor is the fund’s exposure to smaller companies that often carry higher valuation pressures, operational challenges, and more volatile performance than large-cap stocks.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains over the past month, three months, and year-to-date, indicating positive recent momentum in small-cap stocks.
Broad Sector Diversification
Holdings are spread across many sectors such as health care, industrials, financials, and technology, which helps reduce the impact if any one industry struggles.
Low Expense Ratio for a Small-Cap Fund
The fund’s relatively low fee means more of the returns from its small-cap holdings stay in investors’ pockets over time.
Negative Factors
Heavy U.S. Concentration
With the vast majority of assets in U.S. companies, the ETF offers little geographic diversification and is highly tied to the U.S. economy.
Small-Cap Volatility Risk
Because it focuses on smaller companies, the fund can be more sensitive to market swings and economic slowdowns than large-cap ETFs.
Top Holdings in Higher-Risk Names
Several of the largest positions are in more speculative areas like emerging technology and mining, which can experience sharp price moves.

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

IWM Summary

The iShares Russell 2000 ETF (IWM) tracks the Russell 2000 Index, which focuses on smaller U.S. companies across many industries like health care, industrials, and technology. Instead of owning just a few big names, you get a wide mix of small-cap stocks such as Bloom Energy and Kratos Defense in a single fund. Someone might invest in IWM to seek long-term growth and diversify beyond large, well-known companies. A key risk is that smaller companies can be more volatile, so the price of this ETF can move up and down more sharply than the overall market.
How much will it cost me?The iShares Russell 2000 ETF (IWM) has an expense ratio of 0.19%, which means you’ll pay $1.90 per year for every $1,000 invested. This cost is slightly higher than average for passively managed ETFs because it tracks a more specialized index of small-cap stocks, which can involve higher management and operational costs.
What would affect this ETF?The iShares Russell 2000 ETF (IWM), which focuses on U.S. small-cap companies, could benefit from economic growth and innovation in sectors like technology and healthcare, as these industries often drive entrepreneurial success. However, it may face challenges from rising interest rates, which can increase borrowing costs for smaller companies, and economic slowdowns that disproportionately impact small-cap stocks. Regulatory changes or sector-specific disruptions could also influence the ETF's performance.

IWM Top 10 Holdings

IWM’s story is all about U.S. small caps, with a tilt toward tech, industrials, and health care rather than a single star stock. Bloom Energy has been a key engine, rising steadily and giving the fund a clean-energy kick, while Advanced Energy and Sterling Infrastructure add momentum from tech and infrastructure themes. On the flip side, Credo Technology and Coeur Mining have been lagging, acting like a bit of sand in the gears. Overall, performance is driven more by broad U.S. small-cap breadth than any one heavyweight name.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Bloom Energy1.01%$696.53M$38.01B537.90%
62
Neutral
Fabrinet0.69%$477.05M$18.68B164.70%
78
Outperform
Nextpower Inc0.61%$418.88M$17.90B180.02%
78
Outperform
Coeur Mining0.60%$416.14M$19.42B236.38%
69
Neutral
Echostar0.54%$373.54M$33.82B364.75%
57
Neutral
Credo Technology Group Holding Ltd0.53%$367.58M$17.31B125.00%
77
Outperform
Kratos Defense0.45%$311.20M$13.17B140.65%
60
Neutral
Sterling Infrastructure0.43%$299.95M$12.48B252.19%
71
Outperform
Advanced Energy0.41%$280.35M$12.18B239.12%
67
Neutral
Hecla Mining Company0.39%$272.54M$12.49B239.96%
74
Outperform

IWM Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
257.36
Negative
100DMA
252.64
Negative
200DMA
241.32
Positive
Market Momentum
MACD
-3.55
Positive
RSI
46.78
Neutral
STOCH
30.96
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IWM, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 249.01, equal to the 50-day MA of 257.36, and equal to the 200-day MA of 241.32, indicating a neutral trend. The MACD of -3.55 indicates Positive momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 30.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IWM.

IWM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$68.77B0.19%
65
Neutral
$91.61B0.06%
66
Neutral
$70.59B0.03%
67
Neutral
$19.72B0.04%
65
Neutral
$13.91B0.06%
63
Neutral
$150.09M0.75%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IWM
iShares Russell 2000 ETF
248.00
47.50
23.69%
IJR
iShares Core S&P Small Cap ETF
VB
Vanguard Small-Cap ETF
SCHA
Schwab U.S. Small-Cap ETF
VTWO
Vanguard Russell 2000 ETF
GSC
Goldman Sachs Small Cap 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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