IWM Stock Recent News

During LSEG Lipper's fund flows week that ended March 6, investors were overall net purchasers of fund assets for the third week in four, adding a net $27.3 billion. All 10 spot bitcoin ETFs reported net inflows of $1.9 billion, marking the seventh straight weekly inflow since these launched. Conventional taxable-fixed income funds realized a weekly inflow of $500 million - marking their tenth consecutive weekly inflow.

Factors such as subsiding inflation and interest rate concerns, a turnaround in earnings growth, positive price action, as well as the cash-rich status of small caps, all contribute to a potential resurgence in small caps.

The iShares Russell 2000 ETF (IWM) was launched on 05/22/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market.

Small caps and the iShares Russell 2000 ETF NYSE: IWM are marking a notable resurgence, reflecting a significant shift in market sentiment. Over the past three months, the ETF has surged more than 14%, showing resilience even with the year-to-date gain standing at 1.61%.

Overall, ETFs pulled in $10.3 billion in capital last week, taking year-to-date inflows to $31 billion.

Cash Flow, Profitability And Weirdly Undervalued Russell 2000

During the past week, in the wake of the Exchange conference, launches of new ETFs started to pick up again from their recent lull. A total of seven funds rolled out during the week, while several issuers announced or completed ETF closures.

Investors were net sellers of fund assets for the second week in three, redeeming a net $11.6B for the LSEG Lipper fund flows week ended Wednesday (February 21). For the flows week, the Treasury yield rose at all maturities of the curve, except for the two-month yield, which experienced a one basis point decline to end the week at 5.50%.

The Russell 2000 and its ETF have not participated in the rally of large-cap indexes driven by AI fever. Super Micro Computer has contributed to the Russell 2000's gains, but its speculative nature may lead to instability. The Russell 2000's performance relies heavily on one stock, which could result in volatility and potential downturns.

Investors are extremely bullish on stocks, particularly in the tech sector, with allocations in this space reaching the highest level since August 2020. Valuations in the Magnificent 7 and QQQ stocks are not sustainable. I suggest going long smaller caps with better valuations as a more profitable investment strategy, regardless of the overall direction of the market.