Small Cap ETFs: How IWO and IJT Compare on Costs and Holdings
Sector allocations and risk profiles differ sharply between these two small-cap growth funds, shaping their long-term appeal for investors.
Overview
iShares Russell 2000 Growth ETF (NYSEMKT:IWO) offers broad exposure to the small-cap market but carries higher costs and historical volatility than the iShares S&P Small-Cap 600 Growth ETF (NASDAQ:IJT).
Both funds target the small-cap growth segment but utilize different indexing philosophies. While IWO tracks the Russell 2000 Growth Index, IJT follows the S&P Small-Cap 600 Growth Index, which includes profitability screens that often lead to more stable performance profiles for its holdings.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.