First Microcap Exchange-Traded Fund

The first exchange-traded fund based on an index of microcap stocks, the iShares Russell Microcap Index Fund (IWC), began trading on Tuesday on the New York Stock Exchange, according to this article from Reuters. The fund focuses on companies with market capitalizations of $50 million to $550 million. By way of bacjground, the article mentions how the ETF industry has flourished in the last two years, seeing record inflows and the launch of a flurry of new funds. Citing the Investment Company Institute, Reuters said that ETF assets rose $4.27 billion in June to $242.7 billion, and the number of funds traded rose to 171 from 163.

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(May '04-Jun '05)