Small cap equities, emerging markets, and bonds are a few themes that are grabbing attention to start the new year. iShares offers an impressive suite of ETFs to check all these boxes and more.
iShares Russell 2000 ETF (IWM ): IWM seeks to track the investment results of the Russell 2000® Index, which measures the performance of the small-capitalization sector of the U.S. equity market. The fund generally invests at least 90% of its assets in securities of the underlying index and in depositary receipts representing securities of the underlying index. It may invest the remainder of its assets in certain futures, options and swap contracts, cash and cash equivalents, as well as in securities not included in the underlying index, but which the advisor believes will help the fund track the underlying index. IWM has a relatively low 0.19% expense ratio.
iShares Core MSCI Emerging Markets ETF (IEMG ): IEMG seeks to track the investment results of the MSCI Emerging Markets Investable Market Index. The index is designed to measure large-, mid- and small-cap equity market performance in the global emerging markets.
iShares Global Clean Energy ETF (ICLN ): seeks to track the S&P Global Clean Energy Index. The index is designed to track the performance of approximately 30 clean energy-related companies.
iShares Core U.S. Aggregate Bond ETF (AGG ): AGG seeks to track the investment results of the Bloomberg Barclays U.S. Aggregate Bond Index. The index measures the performance of the total U.S. investment-grade bond market. The fund generally invests at least 90% of its net assets in component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities of its underlying index.
iShares TIPS Bond ETF (TIP ): seeks to track the investment results of Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L), which is composed of inflation-protected U.S. Treasury bonds. While the Federal Reserve appears unflinching when it comes to its stance to keep interest rates low, what will it do if inflation starts to rise? With the increased flows into TIPS to start 2021, investors and traders alike might be sensing that a healing economy will translate into higher inflation in the new year.
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