What Is IWM? iShares Russell 2000 ETF
Last updated July 2026
Short answer
IWM is the iShares Russell 2000 ETF, a fund that tracks the Russell 2000 small-cap index at a 0.19% expense ratio. It holds roughly 2,000 smaller US companies, so it is far more diversified across the small-cap market and much less tech-concentrated than VOO. Versus a large-cap fund, IWM gives exposure to the small-cap segment, which is more domestically focused and historically more volatile.
IWM is issued by iShares (BlackRock) and tracks Russell 2000. It charges a 0.19% expense ratio, holds approximately ~$70 billion in assets under management, yields about ~1.2%, and launched in May 2000.
What is IWM?
IWM is the iShares Russell 2000 ETF, a fund that tracks the Russell 2000 small-cap index at a 0.19% expense ratio. It holds roughly 2,000 smaller US companies, so it is far more diversified across the small-cap market and much less tech-concentrated than VOO. Versus a large-cap fund, IWM gives exposure to the small-cap segment, which is more domestically focused and historically more volatile.
IWM is issued by iShares (BlackRock) and tracks Russell 2000, so a single ticker gives you the whole portfolio of underlying holdings weighted by the index's methodology rather than by any active stock-picking.
What does IWM hold?
IWM is weighted toward its largest constituents. As of early 2026, the top holdings are:
| Rank | Ticker | Company | % of IWM | |
|---|---|---|---|---|
| 1 | IWM | Small-cap constituents are broadly diversified | <1% each | |
| 2 | FTAI | FTAI Aviation | ~0.6% | |
| 3 | SFM | Sprouts Farmers Market | ~0.5% | |
| 4 | INSM | Insmed | ~0.5% | |
| 5 | VKTX | Viking Therapeutics | ~0.4% | |
| 6 | FIX | Comfort Systems USA | ~0.4% | |
| 7 | MLI | Mueller Industries | ~0.4% | |
| 8 | ANF | Abercrombie & Fitch | ~0.3% | |
| 9 | CVLT | Commvault Systems | ~0.3% | |
| 10 | SSD | Simpson Manufacturing | ~0.3% |
The remaining holdings make up the balance of the fund, with weights tapering off below the top names. Because the index reconstitutes on a rolling basis, the roster stays current without active management. Each ticker above links to its individual stock guide in Walnut.
How do I invest in IWM?
There are three common ways to get IWM exposure. Buy shares (or fractional shares) of IWM directly at any major broker that lists it. Hold it as a core position and layer more concentrated ideas on top. Or build it into a thematic portfolio in Walnut, so IWM sits alongside other holdings that express the same thesis, with target weights you can rebalance toward. IWM trades like a stock during market hours, so you buy it the same way you would any listed share.
New to buying funds? See how to buy an ETF, step by step.
Is IWM a good buy?
Whether IWM is a good buy depends less on any single call and more on your time horizon and what you already hold: it tracks Russell 2000, so the real question is whether you want that exposure in your mix and at what weight. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is IWM a buy?
The bottom line on IWM
IWM is the standard way to add US small-cap exposure in one ticker, complementing rather than replacing a large-cap core like VOO. It is more volatile and more sensitive to the domestic economy and interest rates, so it tends to function as a diversifying sleeve sized around a broad core.
More on IWM
Whether IWM is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is IWM a buy?
IWM yields ~1.2% as of early 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see IWM dividend: yield and schedule.
IWM tracks small-cap US stocks (Russell 2000), while VOO tracks large-cap (S&P 500), so they sit at opposite ends of the size spectrum. IWM is more volatile and economically sensitive; VOO is the steadier large-cap core. Read the full side-by-side in IWM vs VOO.
New to funds like IWM? Start with what an ETF is, then how to buy an ETF, or browse the full guide to ETF investing.
Wondering how IWM fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in IWM with AI
Connect the broker you already use and ask Walnut's AI how IWM fits what you actually hold: what it overlaps with, what it leaves you exposed to, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is IWM?
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IWM is the iShares Russell 2000 ETF, a single ticker that holds roughly 2,000 smaller US companies. It tracks the Russell 2000, the standard small-cap benchmark, so it captures the small-cap segment of the US market rather than the large-caps that dominate VOO or QQQ.
What is IWM's expense ratio?
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0.19% per year (19 basis points) as of early 2026. On a $10,000 investment, that is about $19 per year in fees, higher than broad large-cap funds because the small-cap index has more holdings and turnover. Verify the current figure on the iShares site.
IWM vs VOO: what's the difference?
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VOO holds the S&P 500, roughly 500 US large-caps. IWM holds the Russell 2000, roughly 2,000 US small-caps. They cover different ends of the market and complement each other rather than overlap. IWM is more domestically focused, more diversified across names, and historically more volatile. Walnut is not an investment adviser, so this is not a recommendation.
Does IWM pay a dividend?
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Yes, quarterly. The trailing yield is approximately 1.2% as of early 2026, drawn from the dividends of the underlying small-cap companies. Many small-caps pay little or no dividend, so the yield is modest.
What companies are in IWM?
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Roughly 2,000 small-cap US companies, with no single name dominating; the largest positions are typically under 1% each. Holdings rotate as companies grow into mid-caps or are added to the index. Top names change frequently, so verify the current list on the issuer's site.
Why is IWM more volatile than large-cap funds?
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Small-cap companies are smaller, less liquid, more leveraged on average, and more sensitive to the domestic economy and interest rates than large-caps. As a result the Russell 2000, and IWM with it, tends to swing more in both directions than the S&P 500.
IWM vs IJR: what's the difference?
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Both are small-cap ETFs from iShares. IWM tracks the Russell 2000; IJR tracks the S&P SmallCap 600, which screens for profitability. IJR's index requirement of positive earnings has historically made it less volatile, and IJR's expense ratio is lower. The two cover similar but not identical universes.
What is IWM's AUM?
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Approximately $70 billion as of early 2026, which makes it one of the largest and most-traded small-cap ETFs. The exact figure moves with markets and flows, so verify on the iShares site.
When was IWM created?
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May 2000. IWM is the most widely traded vehicle for US small-cap exposure and has a deep options market used by traders and hedgers, similar to SPY for large-caps.
How do I buy IWM?
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IWM trades like any stock during US market hours. Buy it through any broker: Robinhood, Fidelity, Schwab, Public, M1, or others. Fractional shares are supported at most modern brokers. Connect your broker to Walnut and the AI can show how a small-cap sleeve like IWM fits with your large-cap core.
Is IWM a good investment?
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IWM adds US small-cap exposure that complements a large-cap core, but it is more volatile and more economically sensitive. Whether it fits depends on your time horizon, what else you own, and how much small-cap exposure you want. Walnut is not an investment adviser, so this is not a recommendation.
How do I compare IWM to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. IWM's figures are above; the full method is in Walnut's guide on how to compare ETFs.
Guides that feature IWM
IWM is one of the names covered in these guides. Each one puts the fund next to its peers so you can see where it fits rather than judging it alone.
Related ETFs
Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to early 2026; verify current figures against iShares (BlackRock)'s fund page or your broker before investing.