iShares Russell 2000 ETF Earnings
The next earnings date for iShares Russell 2000 ETF has not yet been scheduled.
Analyst Estimates of iShares Russell 2000 ETF Earnings
What is an Earnings Date
An earnings date is typically considered to be the date that a company publicly announces its earnings. Many companies in the US stock market do earnings announcements once per quarter.
Earnings announcements are typically accompanied by commentary from the company that explains the earnings performance and speaks to future earnings prospects.
Earnings announcements can cause a company’s stock price to change abruptly, so earnings dates are closely monitored by some investors.
iShares Russell 2000 ETF Earnings: Historical
More About iShares Russell 2000 ETF
The fund generally invests at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the component securities of its underlying index (i.e., depositary receipts representing securities of the underlying index) and may invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents.
“iShares Russell 2000 ETF Earnings” Can Refer to the iShares Russell 2000 ETF Earnings Date
Some people say “iShares Russell 2000 ETF earnings” as a shortform way to refer to the earnings date.
For example, someone might say, “I plan to hold my iShares Russell 2000 ETF position through earnings.” That typically means the person is going to hold their position through the upcoming earnings date.
Owning iShares Russell 2000 ETF Stock on the Earnings Date
If you own iShares Russell 2000 ETF stock (IWM) on the earnings date, then you will be exposed to the potential price volatility that often accompanies earnings announcements.
A company’s earnings typically have a big impact on its stock price, which explains why the stock price for iShares Russell 2000 ETF might exhibit major fluctuations on the day of the earnings announcement. The price fluctuations can go in either direction (up or down), representing a larger potential investment risk and reward than many other days of the year.
There is often a big audience of investors involved with trading iShares Russell 2000 ETF shares of stock on its earnings day. This means there is typically more trading volume, liquidity, and price volatility on the day earnings are announced.
These features are attractive to some types of active traders who are looking for stocks that exhibit large price movements and substantial volume.
Owning iShares Russell 2000 ETF Options on the Earnings Date
If you own iShares Russell 2000 ETF options on the earnings date, then you will be exposed to the potential price volatility that often accompanies earnings announcements.
In addition, the extrinsic values of iShares Russell 2000 ETF options that overlap earnings dates are often higher than other days of the year. In other words, the premiums you pay to own iShares Russell 2000 ETF options are typically higher during that period. In particular, they are frequently higher immediately before earnings and on the day they’re announced.
This makes sense considering that prices are often more volatile on earnings dates for iShares Russell 2000 ETF. That potential volatility is a key factor that affects the premium cost of owning options.
Once the earnings announcement is done and the anticipated price volatility has gone down, the extrinsic values of iShares Russell 2000 ETF options often go down. This is sometimes referred to as volatility crush.
Learning More iShares Russell 2000 ETF Earnings
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