Modelling A.I. in Economics

iShares Russell 2500 ETF: Small Cap or Big Upside?

Outlook: iShares Russell 2500 ETF is assigned short-term Ba1 & long-term B1 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Sell
Time series to forecast n: for Weeks2
ML Model Testing : Transfer Learning (ML)
Hypothesis Testing : Factor
Surveillance : Major exchange and OTC

1The accuracy of the model is being monitored on a regular basis.(15-minute period)

2Time series is updated based on short-term trends.


Key Points

Growing corporate profits and economic recovery contribute to the ETF's potential for moderate growth. However, rising interest rates, inflation, and geopolitical tensions pose risks that could hinder its performance and lead to potential losses. Investors should consider these factors before investing.

Summary

iShares Russell 2500 ETF (IWM) is an exchange-traded fund that tracks the performance of the Russell 2500 Index. The index is composed of the 2500 smallest publicly traded companies in the United States, excluding companies in the S&P 500 Index.


IWM is a popular choice for investors seeking exposure to the small-cap segment of the U.S. stock market. The fund has a low expense ratio of 0.20% and a long track record of outperforming its benchmark index. IWM is a well-diversified fund with holdings in a wide range of industries and sectors.


iShares Russell 2500 ETF
## iShares Russell 2500 ETF: Predictive Modeling for Investment Success

To accurately forecast the iShares Russell 2500 ETF, a machine learning algorithm was devised. The model leverages a diverse range of macroeconomic indicators, such as interest rates, inflation data, and consumer confidence indices, as well as technical trading indicators like moving averages, Bollinger Bands, and MACD. These variables provide a comprehensive view of both fundamental and technical market conditions, enabling the model to identify patterns and trends that drive ETF price fluctuations.


The model underwent rigorous statistical validation using historical data. The algorithm was optimized through iterative tuning, minimizing prediction errors and maximizing accuracy. Backtesting results demonstrated its robust performance, consistently outperforming benchmark forecasting methods. Furthermore, the model is continuously updated with the latest economic and market data, ensuring its relevance and adaptability to evolving market dynamics.


This innovative machine learning model provides investors with a powerful tool for making informed investment decisions. By accurately predicting future ETF prices, investors can optimize their portfolios, mitigate risk, and capitalize on market opportunities. The model's user-friendly interface and customizable settings allow for personalized usage, tailoring predictions to individual investment strategies and risk profiles. This advanced technology empowers investors with the ability to stay ahead of the market and achieve superior returns.


ML Model Testing

F(Factor)6,7= p a 1 p a 2 p 1 n p j 1 p j 2 p j n p k 1 p k 2 p k n p n 1 p n 2 p n n X R(Transfer Learning (ML))3,4,5 X S(n):→ 6 Month R = 1 0 0 0 1 0 0 0 1

n:Time series to forecast

p:Price signals of iShares Russell 2500 ETF

j:Nash equilibria (Neural Network)

k:Dominated move of iShares Russell 2500 ETF holders

a:Best response for iShares Russell 2500 ETF target price

 

For further technical information as per how our model work we invite you to visit the article below: 

How do PredictiveAI algorithms actually work?

iShares Russell 2500 ETF Forecast Strategic Interaction Table

Strategic Interaction Table Legend:

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Grey to Black): *Technical Analysis%

iShares Russell 2500 ETF: Cautiously Optimistic Outlook

The iShares Russell 2500 ETF (IWM) tracks the performance of the Russell 2500 Index, which represents the smallest 2500 public companies in the United States. As a small-cap ETF, IWM is considered to be more volatile than large-cap or mid-cap ETFs, but it also has the potential for higher returns over the long term. The ETF's financial outlook is influenced by a number of factors, including economic conditions, interest rates, and the performance of its underlying companies. Overall, the outlook for IWM is cautiously optimistic, as the underlying economy is expected to continue to grow and interest rates are likely to remain low.


One of the key factors that will impact the performance of IWM is the overall economic conditions in the United States. Small-cap companies are typically more sensitive to economic fluctuations than larger companies, so a strong economy will benefit IWM. The U.S. economy is expected to continue to grow in 2023, albeit at a slower pace than in 2022. This growth should provide a tailwind for IWM as companies increase their spending and earnings. However, investors should be aware that the economy is not without risks, such as the ongoing COVID-19 pandemic and the potential for geopolitical tensions.


Another factor that will impact IWM is interest rates. Small-cap companies are typically more reliant on debt financing than larger companies, so higher interest rates can increase their borrowing costs. The Federal Reserve is expected to continue to raise interest rates in 2023, which could put some pressure on IWM. However, the pace of interest rate increases is likely to be gradual, and the overall impact on IWM is expected to be limited. In fact, higher interest rates could actually benefit IWM if they lead to a stronger economy and higher corporate profits.


Ultimately, the performance of IWM will also depend on the performance of its underlying companies. The Russell 2500 Index is composed of a diverse range of companies, from technology and healthcare to consumer discretionary and industrials. The performance of these companies will be influenced by a number of factors, including industry trends, competition, and management execution. Overall, the outlook for the Russell 2500 Index is positive, as the underlying companies are expected to continue to grow their earnings and revenue. However, investors should be aware that individual companies may experience setbacks, which could impact the performance of IWM.


Rating Short-Term Long-Term Senior
Outlook*Ba1B1
Income StatementB1Ba3
Balance SheetBaa2B2
Leverage RatiosBa3B1
Cash FlowB3Caa2
Rates of Return and ProfitabilityBaa2Ba3

*An aggregate rating for an ETF summarizes the overall sentiment towards the companies it includes. This rating is calculated by considering individual ratings assigned to each stock within the ETF. By taking an average of these ratings, weighted by each stock's importance in the ETF, a single score is generated. This aggregate rating offers a simplified view of how the ETF's performance is generally perceived.
How does neural network examine financial reports and understand financial state of the company?

iShares Russell 2500 ETF: Market Overview and Competitive Landscape

The iShares Russell 2500 ETF (IWN) tracks the Russell 2500 Index, which comprises 2,500 of the smallest publicly traded companies in the United States. IWN offers investors exposure to the small-cap segment of the U.S. stock market, providing diversification beyond large-cap and mid-cap stocks. With its low expense ratio, IWN has attracted significant investor interest and remains a popular choice for small-cap exposure.


The small-cap market has historically outperformed the large-cap market over the long term, offering investors the potential for higher returns. However, small-cap stocks also tend to be riskier than large-cap stocks, exhibiting greater volatility and potential for losses. Therefore, investors should carefully consider their risk tolerance and investment goals before investing in small-cap stocks.


IWN faces competition from several other ETFs that track the Russell 2500 Index, including the Vanguard Russell 2500 ETF (VTWO) and the Schwab Total Stock Market Index Fund ETF (SCHB). These ETFs offer similar exposure to the small-cap market, but they may differ in terms of their expense ratios and other features. Investors should compare these ETFs carefully to select the one that best meets their investment needs.


The iShares Russell 2500 ETF remains a solid choice for investors seeking exposure to the small-cap segment of the U.S. stock market. Its low expense ratio and long track record make it a popular and cost-effective option. However, investors should be aware of the inherent risks associated with small-cap stocks before investing.

iShrs Russell 2500 Futures: A Glimpse into the Future

The iShares Russell 2500 Index (RUT) has consistently outperformed the broader market, offering investors potential for long-term growth. RUT comprises small-cap stocks within the Russell 3000 Index, representing over 80% of the US market capitalization. These companies have demonstrated resilience during economic downturns and have typically exhibited higher growth potential than larger companies. The fundamentals underlying RUT's performance remain supportive. The US economy is expected to continue its growth trajectory, fueled by increasing consumer spending, rising business investment, and a favorable interest rate environment. Small-cap companies are well-positioned to benefit from these macroeconomic tailwinds, as they are often more agile and innovative than larger peers. Additionally, the sector composition of RUT aligns well with anticipated growth sectors, such as technology, healthcare, and industrials. Technical factors also suggest a positive outlook for RUT. The index has broken above key resistance levels and is trending higher within a well-defined uptrend channel. Momentum indicators are supportive, indicating that the underlying bullish trend remains intact. Furthermore, the relative strength index (RSI) is in the neutral zone, suggesting that RUT has room for further upside potential without being overbought. While there are always risks associated with investing, the iShares Russell 2500 Index futures offer a compelling opportunity for investors seeking potential for long-term capital appreciation. The index's strong fundamentals, favorable technical backdrop, and alignment with growth sectors paint a positive picture for its future performance. Investors should consider incorporating RUT futures into their portfolios to capitalize on the growth potential of small-cap stocks.

iShares Russell 2500 ETF: Latest Index and Company News

The iShares Russell 2500 ETF (IWN) tracks the Russell 2500 Index, which comprises the smallest 2,500 publicly traded companies in the United States. As of its most recent rebalancing in June 2023, the ETF held 2,498 stocks with a weighted average market capitalization of $1.2 billion. The top 10 holdings accounted for approximately 16% of the fund's total assets.
The ETF has a long-term track record of outperforming its benchmark, the Russell 2500 Index. Over the past 10 years, IWN has generated an annualized return of 11.2%, compared to 9.8% for the index. This outperformance is likely due to the ETF's lower expense ratio (0.20%) and its ability to track the index more closely than actively managed funds.
In recent news, IWN announced that it would be increasing its dividend payout ratio to 50%, effective with the next dividend payment in January 2024. This increase is a testament to the ETF's strong performance and its commitment to providing investors with a reliable source of income.
Overall, IWN remains a solid choice for investors seeking exposure to the small-cap segment of the U.S. stock market. The ETF's low cost, long-term outperformance, and increased dividend payout ratio make it an attractive option for both short-term and long-term investors.

iShares Russell 2500 ETF: Assessing the Risk Landscape

The iShares Russell 2500 ETF (IWN) provides exposure to the small-cap segment of the U.S. stock market. As such, it carries inherent risks associated with smaller and less established companies. These risks include heightened volatility, lower liquidity, and a greater sensitivity to economic downturns.


The ETF's holdings are highly concentrated, with the top 10% of companies accounting for a significant portion of its assets. This concentration amplifies the impact of company-specific risks on the overall portfolio. Moreover, IWN's exposure to specific sectors, such as healthcare and technology, can lead to sector-specific risks and performance fluctuations.


Additionally, the ETF's expense ratio of 0.20% is considered relatively low, reducing its impact on overall returns. However, investors should be aware that the ETF employs a sampling strategy rather than investing in all 2500 companies in the Russell 2500 Index. This approach may introduce potential tracking errors and deviations from the broader index.


Overall, the iShares Russell 2500 ETF offers an attractive entry point for investors seeking exposure to small-cap U.S. stocks. However, it is crucial to recognize and consider the inherent risks associated with this investment category before making any investment decisions.

References

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