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Opinions Brooke Thackray
iShares Russell 2000 ETFIWMTOP PICKDec 23, 2014
Brooke ThackrayStock 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 $235, then the S&P is off to the races.
This is the seasonal time period for the small caps to do well. Also, they have underperformed for most of the year. Although the small caps were going up in 2013, in 2014 they have gone down and have been flat. At the same time, the S&P 500, has been going up. This has now broken out of a consolidation base, right at the beginning of their seasonal period. Underperformance coming into their seasonal period with a good break out at the start of their seasonal period, this is well set up to outperform for the next few months. The other positive thing is that these are US$ based.