Summer Sale
50% off Premium Yearly
Opinions Richard Croft
iShares Russell 2000 ETFIWMTOP PICKDec 18, 2017
Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
You might be interested:
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.
Buy iShares Russell 2000 March 2018 150 calls. This is a play on small US stocks. This index is the one which will benefit the most from the tax structure as it is currently laid out. The reason he is buying a Call is that you are going to get $6 for a call option with a strike Price of 150. The ETF is trading at about $154, so you are buying an "in the money" Call, and you are going to pay about $6 for it. You may get a dip in this index when the tax bill goes through. He wouldn't worry too much about that. If you want to wait for it, that's okay. You might want to buy half now and the other half then.