Which Is the Better Long-Term Buy: iShares' Small-Cap IWM or Invesco's Tech-Heavy QQQ?
QQQ has dominated the past decade, while IWM is still waiting for its turn. Here is how to decide which one belongs in your portfolio.
Overview
The iShares Russell 2000 ETF (NYSEMKT:IWM) provides broad exposure to small-cap stocks, while the Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) offers concentrated exposure to large-cap technology and growth leaders.
Investors often choose between these two funds to balance their market capitalization exposure. This comparison examines how the growth-focused giants of the tech world stack up against the broader, more volatile universe of smaller American firms. While QQQ tracks the tech-heavy Nasdaq-100, IWM monitors the Russell 2000 Index.
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.