IWM Stock Recent News

Wall Street has wavered massively since Trump's win, witnessing both boom and bust over the past six months. But trade deals and chances of tax cuts and deregulation could boost the U.S. market again.

I see a more favorable return/risk profile from IWMI than IWM due to IWM's unusually high implied volatility. The current IV underlying IWM creates favorable prices for IWMI's options. As a reflection, IWMI currently offers a 15.41% dividend yield, more than 2x higher than its historical average.

The small-cap index records its biggest weekly gain since November. We highlight five top-ranked ETFs to tap the current momentum.

I am downgrading the Russell 2000 ETF to Neutral, as it currently trades at 193.50 amidst market volatility. Small-cap stocks were in a bear market but showed potential for a bounce, with IWM initially projected to rebound to 192.79 or higher. Despite the rally, I am less inclined to be long on small-caps and see significant risks, including a potential recession and massive federal debt.

Small cap stocks, or those companies with market capitalizations between $300 million and $2 billion, are a vital component of a diversified investment portfolio due to their growth potential and ability to enhance long-term returns.

America faces significant debt refinancing in 2025, with $8.2 trillion needing turnover, pressuring the Fed to cut rates to avoid recession. Leveraged ETFs and hedge funds are driving market volatility, with recent massive sell-offs due to margin calls and risk management pressures. Current market conditions are reminiscent of the 2018 trade war, with tariffs and strategic moves impacting valuations and investor sentiment.

I remain bearish on stocks but hold a leveraged ETF for the iShares Russell 2000, which is in a bear market, down 21% from its peak. Small-cap stocks have underperformed large-caps, especially during recessions, but technical analysis suggests potential short-term gains from gap-fills and Fibonacci retracements. I favor ETFs like IWM and Vanguard Small Cap Value Index for small-cap exposure, highlighting their low management fees and diversified holdings.

President Trump's tariffs are not negotiating tactics, but a protectionist move aimed at reversing globalization and boosting U.S. manufacturing, causing market selloffs. The tariffs will harm U.S. consumers and businesses, raising prices and potentially leading to a recession, with an average household impact of $3,800 annually. Big Tech stocks have been hit the hardest by the tariff threat, with the Nasdaq down nearly 16% and the Magnificent 7 down over 20%.

Growth stocks can offer investors an exciting ride, but that ride can be wild (and scary) at times. Younger, faster-growing companies tend to produce higher investment returns but are often riskier.

The S&P 500 has been under pressure due to trade tensions. These ETFs look trade-proof.