iShares Russell 2000 ETF

IWM

Market cap $78.3B

The Federal Reserve has not been generous with rate cuts lately, and the Vanguard Small-Cap Value ETF (NYSEARCA:VBR | VBR Price Prediction) has the kind of interest rate sensitivity that makes that hurt.

This educational screen ranks large-cap dividend stocks by combining dividend yield with free cash flow yield, emphasizing income plus cash-generation strength. Each stock must already pay a dividend and have free cash flow yield above dividend yield to pass the screen. The portfolio selects one qualifying company from each of the 11 market sectors to improve sector diversification.

The Russell 2000 is beating the S&P 500 this year, but that outperformance is masking a disturbing trend of falling earnings estimates

If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the iShares Russell 2000 ETF (IWM), a passively managed exchange traded fund launched on May 22, 2000.

The dollar hit a six-week high amid Iran deal uncertainty. ETFs tied to the dollar may gain, while gold and emerging markets could struggle.

Exchange traded fund inflows have topped $750 billion in 2026. This puts the industry on pace to challenge the $1.5 trillion annual record set last year, Todd Rosenbluth, head of research at VettaFi, told host Nate Geraci on this week's ETF Prime.

Small caps are finally getting their moment. The iShares Russell 2000 ETF (NYSEARCA:IWM | IWM Price Prediction) is up 12.11% year to date and 31.51% over the past year, a sharp rotation away from the mega-cap trade that dominated the prior cycle.

Small-cap stocks are beginning to outperform again, but ETF investors remain overwhelmingly focused on mega-cap technology and AI trades — a disconnect some strategists believe could create an opportunity in overlooked parts of the market.

The iShares Russell 2000 ETF (NYSEARCA:IWM | IWM Price Prediction) and the Vanguard Russell 2000 ETF (NASDAQ:VTWO) hold the same 2,000 small-cap stocks in the same weights and track the identical benchmark.

There has been a visible disparity between the performance of U.S. small-caps and U.S. large-caps so far this year. What hasn't been too visible is a lot of investor interest in the action.