IWM and IWO Provide Small-Cap Diversification, But One Offers More Growth Potential for Investors
The iShares Russell 2000 ETF (NYSEMKT:IWM) stands out for its lower costs, higher yield, and broader diversification, whereas the iShares Russell 2000 Growth ETF (NYSEMKT:IWO) focuses more heavily on growth-oriented small-cap stocks.
Both IWM and IWO track segments of the small-cap U.S. stock market, but IWM covers the full Russell 2000 Index, while IWO zeroes in on the growth subset. This comparison highlights where the two diverge on cost, performance, and risk.
Beta measures price volatility relative to the S 500. The 1-yr return represents total return over the trailing 12 months.
Source Fool.com