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Opinions Jon Vialoux
iShares Russell 2000 ETFIWMTOP PICKDec 03, 2014
Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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RSP is not overly exposed to just tech and communications. IWM at market weight has performed much better than RSP. But we're hopefully going to see some rotation. RSP is a great idea, and there are similar tickers that trade on the Canadian side.
IWM has the smallest 2000 companies out of the Russell 3000, underperforming. Small cap should perform better with steady or falling interest rates, as they tend to be more levered.
His portfolio style favours the mid- and large-cap names, but small caps can do well in a lower-rate environment.
20% off all time share price high.
Market rally will lift shares to new records.
Small cap indexes presenting opportunity.
Better diversity in companies that make up index.
Cole KachurFinancials, energy and utilities will see a catch-up trade in the second half of 2023. Certain cyclicals will perform. IWM saw good support at $180 and could top at $195-199. But the Russell 2000 is extremely sensitive to interest rates, and a third of the index is not profitable (those companies). The GDP is also expanding, though, but she thinks GDP will slow while rates stay at 5-5.5%. Overall, not a great environment for small caps and cyclicals. But there will be a catch-up trade in cyclicals in Q3, then it peters out.
Joe Terranova
Larry Berman CFA, CMT, CTA
It gained today. It's an important indicator, reflecting the Russell smallcaps. Last September, the Russell and IWM exploded up, but since January this has been rangebound at $210-235. AMC, healthcare, financials, industrials and tech dominate the IWM. If this breaks $235, then the S&P is off to the races.
Investors tend to take on more risks at the end of the year and at the start of the new year. From December 15, all the way through to March 7, the Russell 2000 tends to gain about 5.65% on average. That outpaces the S&P 500 return by about 3%. December is particularly strong. About 88% of the time it is positive in the month of December, so you definitely want to have your exposure to the small-cap stocks. The largest holding in the small-cap is financials, which runs about 25%. Tax loss selling could be a bit heavier on something like the Russell 2000. It has been hovering around the flat line for most of the year. If you can buy this on weakness over the next few weeks, that would be ideal. He is guessing there will be a breakout on the strength of the market behind it and the positive seasonal tendencies.