Should I Buy iShares Russell 2000 ETF (IWM)? Finance YouTuber Analysis

The YouTuber suggests the Russell 2000 as a smart investment for the decade ahead, even in an overpriced market. This is because it represents smaller, cheaper, and often overlooked companies, offering a potential solution to the high valuations seen in larger indices and providing better long-term returns.

“I made an entire video on exactly that, the smaller, cheaper, often forgotten corner of the market called the Russell 2000, and why even starting from a massively overpriced market like this one, it could be one of the smartest places to be for the decade ahead.”

The YouTuber argues that the Russell 2000, representing smaller companies, is a strong buy due to current market valuations. Historically, when the S&P 500 is overvalued (as it is now, similar to 2000), the Russell 2000 has outperformed over the subsequent decade because its valuations are more reasonable. They advocate for dollar-cost averaging into an ETF tracking this index.

“If history rhymes even a little bit, that points towards the Russell 2000, not the S&P, for the next 10 years.”

The YouTuber recommends putting the IWM ETF (Russell 2000) on the radar, suggesting it can 'get busy' due to small caps' ability to run. He advises buying it when it pulls back to lower levels, specifically referencing its April 8th low of $174, to capture the subsequent upward move.

“This right here, right? You see everybody see this level? April 8th when it was way down here, 174. These are the these are the times we want to get it.”

The YouTuber suggests buying IWM (Russell 2000 ETF), stating that it has a technical setup indicating a 'blastoff' to $220. He acknowledges that political turmoil and market uncertainty could cause stagnation, but maintains that technically, it's ready for a significant move, requiring a long-term perspective.

“IWM should be ready to take off easily to 220 without even hesitation.”

The YouTuber suggests the Russell 2000 (IWM) as a safer alternative for long-term investment, especially when large-cap stocks are stagnant. He notes its potential for significant growth in certain years, similar to its performance in 2020 and 2021, and advises buying the ETF directly for exposure to small-cap quality companies.

“If you want to play it safer this is called the Russell 2000 this is the ticker symbol is iwm... if this is one of those years in 2025 where this go crazy like it did in 2020 and 2021 you want to be in there.”

The YouTuber recommends IWM, the Russell 2000 ETF, as a strategic play for the current market cycle, especially under a Trump presidency, where small-cap stocks tend to run. He notes that while volatile, it can offer significant gains during specific periods.

“coach is telling you the best way to play this is for you guys for this particular season for this particular cycle to get in the iwm”

The YouTuber recommends buying the iShares Russell 2000 ETF (IWM) for a short-term gain, noting its recent 3% increase. He believes small caps are poised for a temporary push of 15-20% and suggests getting in and out, then returning to quality tech stocks. He prefers buying the ETF over individual small-cap companies.

“but can I buy the Russell 2000 for a temporary push up to 15 20% get in and get out and then get back in my my normal bag my tech stocks my stuff that I know that's going to do their thing that I'm willing to stick through whether it's up or down.”

The YouTuber, citing Tom Lee, argues that small caps are poised for a significant rally, potentially 40% or more, due to anticipated Fed rate cuts starting in September. Historically, rate cuts have provided the biggest boost to small-cap performance, and the current setup is compared to the strong rally seen in late 2023. The Russell 2000 (IWM) is highlighted as a key beneficiary, with individual small-cap stocks potentially seeing even larger gains.

“he's looking for a 40% move small caps that's the iwm okay but check this check this stat out rate Cuts have tended to give the biggest boost to small caps”

The YouTuber suggests buying IWM on a pullback, anticipating a 'bull flag' formation after its recent run-up. He believes that small caps, represented by IWM, are poised to take the lead in the market, and that the ETF provides diversified exposure to profitable small-cap companies. He also notes that the ETF was 'pinned down' for two years before its recent breakout.

“Don't feel like you missed it, you will get a chance right there at this level to get back in it and take it back to the upside.”

The YouTuber advises rotating into the Russell 2000 (IWM) due to an ongoing sector rotation into small-cap companies. He believes these smaller companies can 'fly' when their turn comes and suggests buying on a pullback to $213, $210, or $200, with potential upside to $220 and $225.

“so on a pullback if you get the pull back to 213 210 or 200 My Level to the upside still going to get hit so that's going to be even a better entry so when this pull back I want you guys to have this on your radar okay”

The YouTuber suggests that a slight rotation out of tech stocks, which might slow down, could benefit IWM (Russell 2000 small-cap stocks). He believes IWM could 'wake up' and 'fly tomorrow' as a recipient of this rotation.

“the iwm there's a slight rotation happening you know I'm saying Tech will probably still do its thing but maybe slow down the tad bit if that is the case this should be one of the recipients of something that wakes up the iwm the small cap stocks otherwise known as the Russell 2000”

The YouTuber suggests IWM as a safer way to gain exposure to small-cap companies, including SMCI, which are expected to perform well when interest rates are cut. He anticipates a 13-20% return over the next 12 months, especially if bought on a pullback below or around $200.

“If you don't have the iwm next to your vti or your vo or your SMH consider adding this it's only up 7% today it got at least another 20 13 to 20% to go for over the next 12 months.”

The YouTuber recommends buying IWM, the Russell 2000 ETF, because small-cap stocks have more room to run compared to the S&P 500 and QQQ, which are at all-time highs. He notes that IWM has shown moderate gains over the past year, suggesting it is not overextended and offers growth potential.

“I got got two for you guys for this upcoming month that I want you guys to Plug and Play One is a ETF okay and that is the iwm this one is the Russell 2000”

The YouTuber suggests IWM as a potential buy, especially if tech stocks are selling off. He identifies a buy zone between $197-$198, with a potential move towards $205. He believes it can perform well even if tech declines, as it is playing catch-up after being down for most of the previous year.

“This is a level of what we call an entry or a buy Zone 198 197 is in route to 205.”

The analyst identifies smaller US companies, particularly those in the Russell 2000, as potential beneficiaries of Trump's policies. These companies are often domestically oriented, would benefit from lower taxes, reduced competition due to tariffs, and lower borrowing costs from potential interest rate cuts, making them strong stock-picking candidates.

“weniger Steuern und niedrigere Fremdkapitalzinsen also das ist für diese aktiengruppe glaube ich am allerstärksten da aber es ist dann doch eher ein stockpacking Markt als äh äh quasi passives lass mal den Index nehmen”

A recent strong rise in the Russell 2000 triggered a positive signal, historically indicating a nearly 90% probability of significant returns over the next 12 months. The YouTuber suggests that if interest rates are cut and there's no recession, a 20-40% gain for the Russell 2000 is realistic.

“12 Monate später eine fast 90przentige Trefferquote dass der Russell 2000 eine ordentliche Rendite abwirft also nach oben steigt und hier spekulieren auch viele schon 20 bis 40% das wäre schon wirklich sehr sehr heftig.”

The YouTuber likes small-cap stocks, specifically the iShares Russell 2000 ETF (IWM), because these companies are generally more sensitive to interest rates and are expected to receive a significant boost from anticipated Fed rate cuts.

“I also like the small cap stocks here in the ishares Russell 2000 ETF the iwm as companies that are generally more sensitive to interest rates and should get a bigger Boost from fed cuts to come.”