IWV: Derisking By Broadening Exposure To The Wider Market
The iShares Russell 3000 ETF offers broad market exposure but is rated Hold due to better alternatives. IWV provides more diversification than S&P 500 funds like IVV, with less concentration in top holdings and tech sector weight. Despite its diversification, IWV's yield is lower than IVV's, and its dividend growth has slowed in recent years.
The Case For The IWV ETF
Diversification is key, and the iShares Russell 3000 ETF offers broad exposure to 98% of the U.S. equity market. Buying during sharp market downturns, as seen in April 2025, has historically proven optimal for long-term investors. IWV's blended performance and attractive long-term returns make it a strong candidate for portfolio core holdings.
IWV: Future Performance Will Likely Remain Slightly Inferior To The S&P 500 Index
The iShares Russell 3000 ETF has slightly underperformed the S&P 500 index in the past and is expected to continue to do so in the future. IWV's inclusion of mid-cap and small-cap stocks has impacted its long-term performance, as these stocks tend to deliver inferior returns compared to large-cap stocks in the long run. IWV has a higher expense ratio than its peer fund, Vanguard Russell 3000 ETF.
