During the third quarter, Associated Banc Corp boosted its holdings in iShares Russell 2000 ETF by 151.1%, purchasing an additional 16,142 shares to bring its total to 26,823. According to the firm’s latest SEC filing, the position was valued at approximately $6.49 million at quarter end. This sizeable increase positions Associated Banc among the larger institutional holders of the small-cap benchmark ETF and underscores the bank’s bullish view on the small-cap segment.

Benjamin Edwards Inc. lifted its IWM position by 23.9% during the same period, acquiring 2,863 more shares to hold 14,852 in total. The firm reported that its stake was worth $3.59 million as of the most recent quarter close. This move reflects a broader trend of wealth managers modestly increasing small-cap ETF allocations, even as overall equity markets remain range-bound.

Strategists highlight three factors that could propel the Russell 2000, and by extension IWM, next year: first, attractive valuations—small caps trade at an average P/E of 18 versus 31 for the S&P 500; second, potential rate cuts—small caps carry more floating-rate debt and would benefit from lower borrowing costs; third, historical resilience—during economic downturns, smaller companies have demonstrated greater nimbleness. IWM offers exposure to nearly 2,000 small-cap firms, has delivered average annual returns of 8.05% since inception, and charges a 0.19% management fee, making it a cost-effective vehicle for investors seeking broad small-cap participation.