EQWS takes an equal-weight position on the Russell 2000. Compared to the benchmark Russell 2000, the equal-weight methodology has a much lower financial tilt at 10.9% and smaller information technology position at 13.3%. The indexing methodology also makes the fund overweight micro-caps at 62.7% of the portfolio.
SCHA tracks the Dow Jones U.S. Small-Cap Total Stock Market Index, which also includes some mid-cap and fewer micro-cap stocks than in the Russell 2000. The Schwab offering is also the cheapest on the block, with a 0.08% expense ratio.
“On the other side of that coin, though, is opportunity – should the RUT break through the 1160-1164 area. That development would open up further – potentially significant – upside. On a preliminary basis, the index may be in the process of doing just that as a late-day rally saw the RUT accelerate to the upside upon breaking above 1164. It was able to close the day at 1170.58,” adds See It Market.
iShares Russell 2000 ETF
Tom Lydon’s clients own shares of IWM.