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iShares Micro-Cap ETF (IWC) Hits a New 52-Week High

Sweta Jaiswal, FRM
·2 min read

For investors looking for momentum, iShares Micro-Cap ETF IWC is probably a suitable pick. The fund just hit a 52-week high and is up 87.5% from its 52-week low price of $55.02/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

IWC in Focus

The fund seeks to track the investment results of an index composed of micro-capitalization U.S. equities. IWC has AUM of $803.8 million and charges 60 basis points in annual fees.

Why the Move?

The chances of a divided Congress in the United States seem more likely, where Republicans can continue to control the Senate and Democrats, the House. Thus, as a result of this political gridlock, major and stringent changes in the corporate tax policies will be very difficult to implement in the medium-term. Thus, easing worries regarding major policy changes are making the investing environment more friendly for small-cap stocks. Also, the positive news regarding the coronavirus vaccine and treatment have been instilling optimism in the market participants. Small caps have also been performing well, led by increasing hopes of a second round of fiscal stimulus post-election, rising virus cases globally and an uptick in small-business optimism index. In the current scenario, funds like IWC appear an attractive investment option.

More Gains Ahead?

It seems like the fund will remain strong, as it has a positive weighted alpha of 20.80, which gives cues of further rally.

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iShares MicroCap ETF (IWC): ETF Research Reports
 
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