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 July 24, 2000.
The fund is sponsored by Blackrock. It has amassed assets over $12.61 billion, making it one of the largest ETFs attempting to match the Small Cap Value segment of the US equity market.
Why Small Cap Value
Small 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. 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.
Costs
Since 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 1.61%.
Sector Exposure and Top Holdings
Even 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 24.9% of the portfolio. Industrials and Healthcare round out the top three.
Looking at individual holdings, Echostar Corp Class A (SATS) accounts for about 1% of total assets, followed by Hecla Mining (HL) and Ttm Technologies Inc (TTMI).
The top 10 holdings account for about 5.92% of total assets under management.
Performance and Risk
IWN 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 roughly 6.35% so far this year and it's up approximately 27.69% in the last one year (as of 04/03/2026). In the past 52-week period, it has traded between $131.84 and $200.95.
The ETF has a beta of 1.02 and standard deviation of 20.42% for the trailing three-year period, making it a medium risk choice in the space. With about 1406 holdings, it effectively diversifies company-specific risk.
Alternatives
iShares 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 Schwab Fundamental U.S. Small Company ETF (FNDA) and the Vanguard Small-Cap Value Index Fund ETF Shares (VBR) track a similar index. While Schwab Fundamental U.S. Small Company ETF has $9.36 billion in assets, Vanguard Small-Cap Value Index Fund ETF Shares has $32.66 billion. FNDA has an expense ratio of 0.25% and VBR charges 0.05%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also 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.
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iShares Russell 2000 Value ETF (IWN): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
