Looking for broad exposure to the Small Cap Value segment of the US equity market? You should consider the iShares Russell 2000 Value ETF (IWN Quick QuoteIWN - Free Report) , a passively managed exchange traded fund launched on July 24, 2000.

The fund is sponsored by Blackrock. It has amassed assets over $13.82 billion, making it one of the largest ETFs attempting to match the Small Cap Value segment of the US equity market.

Why Small Cap Value

With more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking.

Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.24%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 1.54%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector -- about 28.2% of the portfolio. Industrials and Healthcare round out the top three.

Looking at individual holdings, Umb Financial (UMBF) accounts for about 0.63% of total assets, followed by Caretrust Reit (CTRE) and Sm Energy (SM).

The top 10 holdings account for about 5.41% of total assets under management.

Performance and Risk

IWN seeks to match the performance of the Russell 2000 Value Index before fees and expenses. The Russell 2000 Value Index measures the performance of the small-capitalization value sector of the U.S. equity market.

The ETF has added about 17.62% so far this year and is up roughly 19.58% in the last one year (as of 10/09/2026). In the past 52-week period, it has traded between $168.85 and $227.43.

The ETF has a beta of 1.04 and standard deviation of 19.79% for the trailing three-year period, making it a medium risk choice in the space. With about 1390 holdings, it effectively diversifies company-specific risk.

Alternatives

iShares Russell 2000 Value ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWN is an outstanding option for investors seeking exposure to the Style Box - Small Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.

The Schwab Fundamental U.S. Small Company ETF (FNDA) and the Vanguard Morningstar Small-Cap Value ETF (VBR) track a similar index. While Schwab Fundamental U.S. Small Company ETF has $8.75 billion in assets, Vanguard Morningstar Small-Cap Value ETF has $35.56 billion. FNDA has an expense ratio of 0.25% and VBR charges 0.05%.

Bottom-Line

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.