Moving Away From Megacaps? Here's How the Russell 2000 Value and S&P Mid-Cap 400 Value ETF Compare.
Russell 2000 delivered 30.9% returns in one year, but S&P Mid-Cap 400 offers lower costs and reduced volatility. Which fits your portfolio?
Overview
iShares Russell 2000 Value ETF (NYSEMKT:IWN) captures smaller, undervalued companies, whereas iShares S&P Mid-Cap 400 Value ETF (NYSEMKT:IJJ) focuses on the mid-sized tier of the U.S. market.
Both exchange-traded funds seek to isolate value characteristics within their respective size buckets. While they share a similar philosophy, the difference between mid-cap and small-cap stocks often leads to diverging paths in volatility and growth potential depending on the prevailing economic cycle.
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Details
Source
Originally published at www.fool.com.