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IWMiShares Russell 2000 ETF
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  1. Home
  2. Financial Ratios

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  3. IWM
  4. Financial Ratios

iShares Russell 2000 ETF (IWM) Financial Ratios

Latest Ratios: P/E Ratio N/A · EV/EBITDA N/A · ROE N/A. (2026–2026 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

IWM Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTM
Market Cap—
Enterprise Value—
P/E Ratio →—
P/S Ratio—
P/B Ratio—
P/FCF—
P/OCF—

P/E links to full P/E history page with 30-year chart

IWM EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTM
EV / Revenue—
EV / EBITDA—
EV / EBIT—
EV / FCF—

IWM Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTM
Gross Margin—
Operating Margin—
Net Profit Margin—

Return on Capital

MetricTTM
ROE—
ROA—
ROIC—
ROCE—

IWM Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTM
Debt / Equity—
Debt / EBITDA—
Net Debt / Equity—
Net Debt / EBITDA—
Debt / FCF—
Interest Coverage—

IWM Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTM
Current Ratio—
Quick Ratio—
Cash Ratio—
Asset Turnover—
Inventory Turnover—
Days Sales Outstanding—

IWM Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTM
Dividend Yield—
Payout Ratio—

Total Shareholder Return Metrics

MetricTTM
Earnings Yield—
FCF Yield—
Buyback Yield—
Total Shareholder Yield—
Shares Outstanding—

Key Metrics

Growth RegimeMixed
ProfitabilityStable
Balance SheetHealthy
Cash FlowRobust
Top Statement Risk

Small-cap credit sensitivity

Fee-Driven Margins Remain Structurally Stable

According to fund prospectus disclosures, IWM maintains a consistent 0.19% expense ratio, which serves as the primary driver of its stable profitability profile despite the absence of traditional operating margins found in standard corporate entities within the broader U.S. equity market landscape.

The fund's profitability is effectively capped by its management fee, yet it benefits from significant operating leverage as the marginal cost of managing additional assets remains near zero. Investors should monitor whether competitive pressure from lower-cost providers forces a fee reduction, which would directly compress the fund's net margin.

Institutional Liquidity Defines Competitive Moat

Based on institutional market structure analysis, IWM's liquidity profile is characterized by superior daily dollar volume and narrow bid-ask spreads, which provides a distinct execution advantage over lower-cost peers like VTWO and reinforces its role as the primary price discovery vehicle for small-cap equities.

This liquidity premium is the core justification for the fund's higher expense ratio relative to its peers. The ability to facilitate large institutional trades with minimal slippage suggests that the fund's liquidity is a structural asset that remains resilient even during periods of heightened market volatility.

Execution Premium Versus Cost Efficiency

As reported in comparative industry data, IWM consistently trades at a higher holding cost than competitors like IJR, yet it maintains a dominant market share by prioritizing institutional execution quality over the aggressive fee compression strategies employed by other passive small-cap index fund providers.

The gap between IWM and its peers appears structural rather than temporary, as the fund's ecosystem of market makers and authorized participants creates a feedback loop of liquidity. Investors must weigh the trade-off between the higher expense ratio and the potential cost savings achieved through tighter execution spreads.

Misinterpreting Index Quality and Valuation

As noted in recent market commentary, the P/E ratio is a frequently misapplied metric for IWM because the Russell 2000 index includes a high concentration of non-profitable 'zombie' companies, which renders traditional valuation multiples misleading indicators of the fund's underlying economic health or growth potential.

Relying on aggregate P/E ratios obscures the reality that a significant portion of the index constituents may lack the ability to cover interest expenses. Analysts should instead focus on credit-related metrics and the proportion of profitable versus non-profitable firms within the index to better assess the fund's true risk profile.

Download Financial Ratios Data

Includes 30+ ratios · 0 years · Updated daily

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IWM — Frequently Asked Questions

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Is IWM stock overvalued?

Based on historical data, iShares Russell 2000 ETF is trading at valuation metrics that vary. Compare with industry peers and growth rates for a complete picture.