Moving Away From Megacaps? Here’s How the Russell 2000 Value and S&P Mid-Cap 400 Value ETF Compare.
iShares Russell 2000 Value ETF (IWN +0.30%) captures smaller, undervalued companies, whereas iShares S&P Mid-Cap 400 Value ETF (IJJ +0.61%) focuses on the mid-sized tier of the U.S. market.
Both exchange-traded funds seek to isolate value characteristics within their respective size buckets. While they share a similar philosophy, the difference between mid-cap and small-cap stocks often leads to diverging paths in volatility and growth potential depending on the prevailing economic cycle.
Snapshot (cost & size)
| Metric | IJJ | IWN |
|---|---|---|
| Issuer | iShares | iShares |
| Share price (as of 8/27/26) | $148.13 | $224.74 |
| Expense ratio | 0.18% | 0.24% |
| 1-yr return (as of 08/27/26) | 15.0% | 31% |
| Dividend yield | 1.6% | 1.4% |
| Beta | 0.96 | 1.02 |
| AUM | $8.7 billion | $14.5 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The iShares S&P Mid-Cap 400 Value ETF is the more affordable option with an expense ratio of 0.18%. Meanwhile, the iShares Russell 2000 Value ETF carries a slightly higher fee and currently provides a lower trailing-12-month dividend payout.
Performance & risk comparison
| Metric | IJJ | IWN |
|---|---|---|
| Max drawdown (5 yr) | (22.7%) | (26.7%) |
| Growth of $1,000 over 5 years (total return) | $1,499 | $1,503 |
What’s inside
The iShares Russell 2000 Value ETF tracks a benchmark of smaller U.S. companies that demonstrate value characteristics such as low price-to-book ratios. With 1,386 holdings, it offers deep diversification across the small-cap landscape. Its portfolio leans into sectors like financial services at 28%, industrials at 12%, and healthcare at 11.6%. Its largest positions include UMB Financial Corp at 0.62%, CareTrust REIT at 0.59%, and SM Energy at 0.57%. The fund was launched in 2000. iShares Russell 2000 Value ETF has paid $3.19 per share over the trailing 12 months, which on its recent ~$224.7 share price works out to a 1.4% yield.
IWN & IJJ: Performance Comparison
Key Financial Metrics
IWN – iShares Trust – iShares Russell 2000 Value ETF
$223.72
+0.30% (+$0.68)
IJJ – iShares Trust – iShares S&P Mid-Cap 400 Value ETF
$147.76
+0.61% (+$0.90)
52wk Range
$168.75 – $227.86
Dividend & Yield
$3.19 (1.42%)
52wk Range
$123.89 – $151.81
Dividend & Yield
$2.34 (1.59%)
IWN – iShares Trust – iShares Russell 2000 Value ETF
$223.72
+0.30% (+$0.68)
52wk Range
$168.75 – $227.86
Dividend & Yield
$3.19 (1.42%)
IJJ – iShares Trust – iShares S&P Mid-Cap 400 Value ETF
$147.76
+0.61% (+$0.90)
52wk Range
$123.89 – $151.81
Dividend & Yield
$2.34 (1.59%)
In contrast, the iShares S&P Mid-Cap 400 Value ETF targets the “sweet spot” of the market by holding 303 mid-sized companies. This segment often provides a balance between the growth potential of smaller stocks and the relative stability of large caps. The portfolio is concentrated in financial services at 22%, industrials at 18.5%, and consumer cyclical at 12%. Top holdings include US Foods Holding at 1.4%, Reliance Steel & Aluminum at 1.17%, and Td Synnex at 1.11%. This fund was also launched in 2000. iShares S&P Mid-Cap 400 Value ETF has paid $2.34 per share over the trailing 12 months, which on its recent ~$148.1 share price works out to a 1.6% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
If your portfolio has become overly concentrated in the tech names that have driven the gains of the S&P 500 and Nasdaq-100 over the past few years, it may be worth considering investing in other parts of the market. Small- and mid-cap companies are typically earlier along in their growth cycles, which means they often present exciting upside potential. But the earlier stages also come with risks, high start-up costs, and less future visibility, making these stocks more volatile.
IWN’s one-year return trounces IJJ’s, though their performances even out over the five-year period. Their dividend yields are also pretty comparable, and while they’re both slightly above the S&P 500’s average 1% yield, they won’t necessarily stand out for income-seeking investors.
Choosing between the IWN and IJJ funds comes down to which market-cap segment you want to hold in your portfolio. Investing in these segments is primarily a play on future growth — the idea that you’re getting in on the ground floor of tomorrow’s market leaders. The smallest companies — those held in IWN — have higher potential upside, as well as a greater risk of failure. The mid-size companies — held by IJJ — have a little less of each. Your choice will likely come down to your individual risk tolerance, investing goals, and current portfolio holdings.
