iShares Micro-Cap ETF

iShares Micro-Cap ETF (IWC) is a BlackRock index fund that tracks the Russell Microcap Index, which covers the smallest publicly traded US companies. As of June 30, 2026, it held about 1,380 stocks, and no single stock made up more than 1% of the fund. Its 0.60% yearly fee is above the 0.37% average of similar small-company funds, and its price has swung much more than the broad US market.

• Over the year to Oct 27, 2026, IWC returned +14.9%, 6th of 7 among similar funds.
• Its 5-year annualized return was +5.7% and its 10-year +10.5%.
• In the 2020 COVID crash it fell 42.9% and regained its old high 6.8 months after the low.
• Its worst full calendar year was 2008 (-39.0%); its best was 2013 (+45.2%).
• The deepest fall in its price history was 64.6% (Jun 19, 2007 to Mar 9, 2009), recovered by Mar 8, 2013.

As of Jun 30, 2026, the fund held 1,380 securities; the ten largest made up 5.46% of assets. It also reported 18.85% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jun 30, 2026, investors withdrew a net $2.7M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +12.36%, +6.55%, +4.89%.

IWC tracks the Russell Microcap Index from FTSE Russell, which is part of the London Stock Exchange Group. The index takes roughly the 1,000 smallest companies in the Russell 3000 Index plus the next 1,000 smallest in Russell's wider universe. Their total market values range from about $1 million to $3.2 billion. The index is weighted by float-adjusted market value. That means bigger companies count for more, but only shares the public can actually trade are counted. Russell decides which stocks are in the index and how much each one counts.

BlackRock's adviser uses representative sampling. Instead of buying every stock in the index, it holds a sample picked to match the index's company sizes, industry mix, yield and trading traits. At least 80% of net assets must be in index stocks. The fund may also use derivatives such as futures and hold cash or money market funds. It may also lend up to one-third of its assets to other firms, which post collateral and pay a fee. The prospectus lists portfolio turnover of 35%.

The result is a very spread-out portfolio. As of June 30, 2026, the 10 largest positions made up just 5.46% of assets. The largest were Ouster (0.86%), Penguin Solutions (0.84%) and SELLAS Life Sciences (0.61%). As of March 31, 2026, financial and healthcare companies made up a large share of the index.

• IWC charges 0.6% a year, versus an average of 0.37% for the similar funds below (6th of 7, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $61 in the first year and $750 over 10 years (assuming a 5% annual return).

It gives broad exposure to the smallest US companies, but its deep, long losses in past downturns make it better suited to a small slice of a portfolio than to its core.

IWC adds the smallest US companies, which broad market funds hold very little of. The cost is a rough ride. It fell 63.8% in the 2008 financial crisis and took about 47 months to climb back from the low. It lost 42.9% in the 2020 COVID crash and recovered in about seven months. It dropped 28% in the 2022 bear market and took about 25 months to recover. Its worst calendar year was 2008, when it lost 39%. Anyone selling shares to cover living costs in years like those would lock in losses. Its yield was 1.23% for the 12 months to October 27, 2026, paid quarterly, so it offers little income. In the SEC's standard example, its 0.60% expense ratio comes to $61 in the first year on $10,000. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).