IWO tracks the Russell 2000 Growth Index, which selects Russell 2000 small caps with higher price-to-book ratios and higher forecast growth. Healthcare, technology and industrials make up a large share of the fund, and many holdings are young or unprofitable companies, including a number of biotechnology firms. Dividend yield is very low. Small-cap growth stocks tend to be sensitive to interest rates and risk appetite, and the fund can be considerably more volatile than large-cap growth funds.
