Sep. 30, 2025 8:17 PM ETiShares Micro-Cap ETF (IWC)IWCPhilipp Brohl628 FollowersiShares Micro-Cap ETF offers exposure to very small U.S. companies, targeting micro-caps that potentially could be overlooked by passive investors.Only 20% of the top 10 holdings were profitable in 2024, and many exhibit erratic cash flows—not the hallmarks of quality long-term investments.Historical total returns (6.83%) lag significantly behind broader U.S. indices, small-cap, and mid-cap ETFs. Higher fees and high portfolio turnover add additional headwinds.During major downturns like the 2008-09 crisis, IWC underperformed across the board. It contradicts the idea that higher risk leads to higher returns.IWC doesn't seem to be a great investment for long-term investors on a risk-adjusted basis, I therefore rate it a "Sell".Jonathan Kitchen/DigitalVision via Getty ImagesWe're living in an extraordinary times. Fueled by passive investing and "no price is too high" mentality, the major indices are rising from one all-time high to the next. This has led to elevated valuations,This article was written byPhilipp Brohl628 FollowersPhilipp is a seasoned value investor with nearly 20 years of experience in the field. He takes a global approach to investment opportunities, seeking out undervalued companies that offer a significant margin of safety, leading to attractive dividend yields and returns. While he does not limit his investments to specific sectors or countries, he focuses only on companies he thoroughly understands and can reasonably assess for future growth potential. Philipp is particularly enthusiastic when he identifies a company with a solid earnings track record trading at less than 8x free cash flow, which inspired his username: 8xfreecash.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments