We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should iShares MSCI USA Small-Cap Min Vol Factor ETF (SMMV) Be on Your Investing Radar?
Read MoreHide Full Article
Looking for broad exposure to the Small Cap Blend segment of the US equity market? You should consider the iShares MSCI USA Small-Cap Min Vol Factor ETF (SMMV - Free Report) , a passively managed exchange traded fund launched on 09/07/2016.
The fund is sponsored by Blackrock. It has amassed assets over $801.59 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
There's a lot of potential to investing in small cap companies, but with market capitalization below $2 billion, that high potential comes with even higher risk.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.93%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 18.60% of the portfolio. Healthcare and Industrials round out the top three.
Looking at individual holdings, Royal Gold Inc (RGLD - Free Report) accounts for about 2.06% of total assets, followed by Fti Consulting Inc (FCN - Free Report) and Landstar System Inc (LSTR - Free Report) .
The top 10 holdings account for about 15.35% of total assets under management.
Performance and Risk
SMMV seeks to match the performance of the MSCI USA Small Cap Minimum Volatility (USD) Index before fees and expenses. The MSCI USA Small Cap Minimum Volatility (USD) Index comprises of small-capitalization U.S. equities that, in the aggregate, have lower volatility characteristics relative to the small-capitalization U.S. equity market.
The ETF has lost about -0.55% so far this year and is up roughly 0.72% in the last one year (as of 07/06/2023). In the past 52-week period, it has traded between $31.91 and $37.05.
The ETF has a beta of 0.79 and standard deviation of 14.92% for the trailing three-year period. With about 300 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares MSCI USA Small-Cap Min Vol Factor ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SMMV is a sufficient option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 2000 ETF (IWM - Free Report) and the iShares Core S&P Small-Cap ETF (IJR - Free Report) track a similar index. While iShares Russell 2000 ETF has $54.09 billion in assets, iShares Core S&P Small-Cap ETF has $68.35 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should iShares MSCI USA Small-Cap Min Vol Factor ETF (SMMV) Be on Your Investing Radar?
Looking for broad exposure to the Small Cap Blend segment of the US equity market? You should consider the iShares MSCI USA Small-Cap Min Vol Factor ETF (SMMV - Free Report) , a passively managed exchange traded fund launched on 09/07/2016.
The fund is sponsored by Blackrock. It has amassed assets over $801.59 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
There's a lot of potential to investing in small cap companies, but with market capitalization below $2 billion, that high potential comes with even higher risk.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.93%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 18.60% of the portfolio. Healthcare and Industrials round out the top three.
Looking at individual holdings, Royal Gold Inc (RGLD - Free Report) accounts for about 2.06% of total assets, followed by Fti Consulting Inc (FCN - Free Report) and Landstar System Inc (LSTR - Free Report) .
The top 10 holdings account for about 15.35% of total assets under management.
Performance and Risk
SMMV seeks to match the performance of the MSCI USA Small Cap Minimum Volatility (USD) Index before fees and expenses. The MSCI USA Small Cap Minimum Volatility (USD) Index comprises of small-capitalization U.S. equities that, in the aggregate, have lower volatility characteristics relative to the small-capitalization U.S. equity market.
The ETF has lost about -0.55% so far this year and is up roughly 0.72% in the last one year (as of 07/06/2023). In the past 52-week period, it has traded between $31.91 and $37.05.
The ETF has a beta of 0.79 and standard deviation of 14.92% for the trailing three-year period. With about 300 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares MSCI USA Small-Cap Min Vol Factor ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SMMV is a sufficient option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 2000 ETF (IWM - Free Report) and the iShares Core S&P Small-Cap ETF (IJR - Free Report) track a similar index. While iShares Russell 2000 ETF has $54.09 billion in assets, iShares Core S&P Small-Cap ETF has $68.35 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.