IWM Has Trailed the S&P 500 for a Decade While Carrying More Risk: The Small-Cap Premium That Never Fully Arrived

Millions of retirement portfolios hold small-cap funds on the promise that extra risk earns extra reward over time. That bargain deserves a hard look at what actually happened across the last decade.

24/7 Wall Street • Oct 2, 2026

VTWO: Cheap, But No Longer Compelling

The Vanguard Russell 2000 ETF is rated "hold" due to less favorable risk-reward versus mid-caps amid tightening monetary policy. VTWO's recent outperformance is driven largely by multiple expansion, not sustainable earnings growth, with 29% of constituents unprofitable. Small-cap stocks face higher floating-rate debt exposure (30%) than the S&P 500 (7%), increasing vulnerability to rising rates.

Seeking Alpha • Sep 17, 2026

3 Overrated ETFs

These ETFs are popular choices among investors, but there are better options.

Morningstar • Aug 20, 2026

Should Vanguard Russell 2000 Index Fund ETF Shares (VTWO) Be on Your Investing Radar?

Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the Vanguard Russell 2000 Index Fund ETF Shares (VTWO) is a passively managed exchange traded fund launched on September 22, 2010.

Zacks Investment Research • Aug 18, 2026

My Son Just Started His First Job. Here's How I'm Teaching Him to Invest His 401(k) Money.

I recommended that my son choose low-cost index funds for his 401(k). The four stock ETFs shown here own a combined 7,415 stocks with expense ratios of 0.02% to 0.07%.

The Motley Fool • Aug 14, 2026

This ETF Has More Than Doubled the S&P 500's Returns This Year, but Be Aware of This One Issue It Could Face in the Second Half of the Year.

Small-cap companies tend to rely more on debt for their operations than larger companies do. More than 40% of the Russell 2000 companies are unprofitable.

The Motley Fool • Jul 25, 2026

The $26.75 Million Bet Against Your Gains: Inside RYLD's Hidden Cost Structure

Small caps ripped higher in the first half of 2026. If you owned Global X Russell 2000 Covered Call ETF (CBOE:RYLD), you watched most of that rally through the window.

24/7 Wall Street • Jul 18, 2026

ETF Edge on what's led to the historic bounce of small cap ETFs

Small caps have been having a banner year, with the Russell 2000 outperforming the S&P 500 year-to-date. Some small-cap focused ETFs have also surpassed that benchmark.

CNBC Television • Jul 13, 2026

Why IWM Holders Are Paying Triple for Small-Cap Exposure and Missing Out on 37 Percentage Points of Gains

If you hold the iShares Russell 2000 ETF (NYSEARCA:IWM), you already know it as the default small-cap ticker on every financial channel.

24/7 Wall Street • Jul 13, 2026

Meet the Unstoppable Vanguard ETF Obliterating the S&P 500 in 2026

The S&P 500 is generating a positive return in 2026 despite volatility related to the U.S.-Iran conflict. The Russell 2000 has outperformed the S&P 500 by a wide margin because it's more insulated from the unstable geopolitical landscape.

The Motley Fool • Jul 11, 2026