IWM ETF Analysis 2023

Analyze IWM

The iShares Russell 2000 ETF (IWM) offers a comprehensive picture of the small-cap market sector in the United States. As of November 13, 2023, IWM's performance and technical analysis present a mixed outlook:

Performance Overview

• Current Price: $169.17, with a minor gain of 0.04% in a day.
• Assets: $49.97 billion, showing significant market participation.
• Expense Ratio: 0.19%, which is reasonable for an ETF.
• PE Ratio: 10.79, indicating the earnings multiple of its holdings.
• Dividend Yield: 1.65%, with a payout ratio of 17.86%.
• 1-Year Return: -8.46%, reflecting challenges over the past year.
• 52-Week Range: 161.67 - 199.26, showing volatility in the short to medium term【9†source】.

Composition and Holdings

• IWM tracks the Russell 2000 index, focusing on U.S. small-cap stocks.
• It comprises 1985 holdings, with the top ten constituting 3.35% of its assets. Notable holdings include Super Micro Computer, Inc., Light & Wonder, Inc., and Weatherford International plc【10†source】【11†source】.

Dividend History

• The recent dividend was $0.82888 on September 26, 2023, with a consistent history of quarterly dividends, which is a positive sign for income-focused investors【12†source】.

Technical Analysis

• Recent Performance: Gained 0.0237% on November 13, 2023. The ETF has risen in 6 of the last 10 days, up by 3.7% over the past 2 weeks.
• Volume Analysis: Falling volume on higher prices suggests potential divergence and an early warning of changes【25†source】.
• Short-Term Trend: Currently in a falling trend with an expectation to drop -12.52% in the next 3 months. However, this prediction could change if the stock maintains its current level or rises【26†source】.
• Buy Signals: A buy signal from a pivot bottom point on October 27, 2023, indicating a potential further rise. The 3-month Moving Average Convergence Divergence (MACD) also shows a buy signal. Nonetheless, there are also sell signals from short and long-term moving averages, implying mixed sentiments【27†source】.
• Support Level: Finds support at $168.62, which could be a buying opportunity【28†source】.

TradingView Analysis

• Overall: Neutral based on oscillators and moving averages. This indicates a lack of clear direction in the market sentiment and price movement for IWM【34†source】【35†source】.

Conclusion

The IWM ETF reflects the inherent volatility and varied performance of small-cap stocks. While there are signs of potential growth and stability, especially in dividend payouts and some buy signals, the overall technical analysis presents a cautious picture with mixed signals and a neutral outlook. Investors should consider these factors along with their risk tolerance and investment goals when making decisions about IWM.