Validea Analyzes iShares Russell 2000 ETF Factor Scores

In a recent report, Validea provided detailed fundamental analysis of the iShares Russell 2000 ETF (IWM), focusing on its exposure to investing factors like value, quality, momentum, and low volatility. The analysis reveals key insights that could influence investor decisions.

Date: 07-10-2024

AI Rating: 5

The report provides a comprehensive overview of the iShares Russell 2000 ETF (IWM), which serves as a Small-Cap Value ETF. It highlights the ETF's sector exposure, notably in the Services sector and the Biotechnology & Drugs industry.

Regarding the investing factors:

Value: With a score of 56, this indicates a moderate level of exposure to value characteristics, suggesting that the ETF may contain stocks that are considered undervalued compared to their intrinsic worth.
Momentum: The score of 42 suggests that momentum is somewhat limited in this ETF, which could mean that the recent price trends among its underlying assets are not particularly strong.
Quality: A notably low score of 7 indicates very low exposure to quality stocks, which could raise concerns for investors focused on financially strong and stable companies.
Low Volatility: With a score of 13, this suggests the ETF has significant exposure to riskier stocks, which may lead to higher price fluctuations.

Investors may interpret these factor scores to assess potential investment risks and rewards. The moderate value exposure could attract value-oriented investors, while the low quality and low volatility scores may raise red flags for those prioritizing stability and sustainable earnings.

Stocks: IWM