How To Become A Successful Investor

In terms of diversification, the iShares Russell 2000 Index (ETF) (NYSE:IWM) is even more diversified than ETFs that closely track the S&P 500. Specifically, iShares Russell 2000 Index (ETF) (NYSE:IWM) seeks investment results that correspond generally to the price and yield performance of the Russell 2000 Index, which is ‘a float-adjusted capitalization weighted index that measures the performance of the small-capitalization sector of the United States equity market and includes securities issued by the approximately 2,000 smallest issuers in the Russell 3000 Index’. Given that it tracks small cap companies that generally don’t have wide moats, the iShares Russell 2000 Index (ETF) (NYSE:IWM) is riskier than SPY or VOO but the ETF can also yield more reward in bull markets and over time.

SFIO CRACHO/Shutterstock.com

SFIO CRACHO/Shutterstock.com