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Should iShares Core S&P Small-Cap ETF (IJR) Be on Your Investing Radar?
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If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the iShares Core S&P Small-Cap ETF (IJR - Free Report) , a passively managed exchange traded fund launched on 05/22/2000.
The fund is sponsored by Blackrock. It has amassed assets over $66.06 billion, making it the largest ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.06%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.65%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 17.30% of the portfolio. Consumer Discretionary and Information Technology round out the top three.
Looking at individual holdings, Blk Csh Fnd Treasury Sl Agency (XTSLA) accounts for about 1.73% of total assets, followed by Elf Beauty Inc (ELF - Free Report) and Comfort Systems Usa Inc (FIX - Free Report) .
The top 10 holdings account for about 6.9% of total assets under management.
Performance and Risk
IJR seeks to match the performance of the S&P SmallCap 600 Index before fees and expenses. The S&P SmallCap 600 Index measures the performance of the small capitalization sector of the U.S. equity market.
The ETF has added about 0.46% so far this year and is up about 6.75% in the last one year (as of 10/11/2023). In the past 52-week period, it has traded between $89.09 and $107.68.
The ETF has a beta of 1.15 and standard deviation of 22.50% for the trailing three-year period, making it a medium risk choice in the space. With about 685 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P Small-Cap ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IJR is a great option for investors seeking exposure to the Style Box - Small Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Small-Cap ETF (VB - Free Report) and the iShares Russell 2000 ETF (IWM - Free Report) track a similar index. While Vanguard Small-Cap ETF has $43.52 billion in assets, iShares Russell 2000 ETF has $51.17 billion. VB has an expense ratio of 0.05% and IWM charges 0.19%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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.
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Should iShares Core S&P Small-Cap ETF (IJR) Be on Your Investing Radar?
If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the iShares Core S&P Small-Cap ETF (IJR - Free Report) , a passively managed exchange traded fund launched on 05/22/2000.
The fund is sponsored by Blackrock. It has amassed assets over $66.06 billion, making it the largest ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.06%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.65%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 17.30% of the portfolio. Consumer Discretionary and Information Technology round out the top three.
Looking at individual holdings, Blk Csh Fnd Treasury Sl Agency (XTSLA) accounts for about 1.73% of total assets, followed by Elf Beauty Inc (ELF - Free Report) and Comfort Systems Usa Inc (FIX - Free Report) .
The top 10 holdings account for about 6.9% of total assets under management.
Performance and Risk
IJR seeks to match the performance of the S&P SmallCap 600 Index before fees and expenses. The S&P SmallCap 600 Index measures the performance of the small capitalization sector of the U.S. equity market.
The ETF has added about 0.46% so far this year and is up about 6.75% in the last one year (as of 10/11/2023). In the past 52-week period, it has traded between $89.09 and $107.68.
The ETF has a beta of 1.15 and standard deviation of 22.50% for the trailing three-year period, making it a medium risk choice in the space. With about 685 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P Small-Cap ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IJR is a great option for investors seeking exposure to the Style Box - Small Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Small-Cap ETF (VB - Free Report) and the iShares Russell 2000 ETF (IWM - Free Report) track a similar index. While Vanguard Small-Cap ETF has $43.52 billion in assets, iShares Russell 2000 ETF has $51.17 billion. VB has an expense ratio of 0.05% and IWM charges 0.19%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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.