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Which Small-Cap ETF Is the Better Buy: iShares' Growth-Focused IWO or Invesco's Revenue-Weighted RWJ?

Small-cap stocks are surging, but how you own them matters more than most investors realize.

Which Small-Cap ETF Is the Better Buy: iShares' Growth-Focused IWO or Invesco's Revenue-Weighted RWJ?

Published August 13, 2026 · Category: Finance

Overview

The iShares Russell 2000 Growth ETF (NYSEMKT:IWO) provides broad, low-cost exposure to small-cap growth stocks, while the Invesco S&P SmallCap 600 Revenue ETF (NYSEMKT:RZG) uses a concentrated, revenue-weighted methodology.

Investors seeking the high-growth potential of smaller companies often compare these two funds. While both target the small-cap segment, their differing index strategies and portfolio densities create unique risk-reward profiles. This analysis examines how their costs, historical performance, and underlying holdings differ as of Aug. 10, 2026.

Details

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.

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Source

Originally published at www.fool.com.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.