If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the iShares MSCI USA Small-Cap Min Vol Factor ETF (SMMV Quick QuoteSMMV - Free Report) , a passively managed exchange traded fund launched on September 7, 2016.

The fund is sponsored by Blackrock. It has amassed assets over $326.28 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

When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

Annual operating expenses for this ETF are 0.2%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 2.13%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Healthcare sector -- about 16.2% of the portfolio. Industrials and Financials round out the top three.

Looking at individual holdings, Aptargroup Inc (ATR) accounts for about 1.5% of total assets, followed by Ensign Group Inc (ENSG) and Old Republic International Corp (ORI).

The top 10 holdings account for about 13.7% 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 gained about 1.93% so far this year and is up about 8.15% in the last one year (as of 07/30/2025). In the past 52-week period, it has traded between $37.87 and $44.35.

The ETF has a beta of 0.67 and standard deviation of 13.58% for the trailing three-year period. With about 309 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 Vanguard Small-Cap ETF (VB) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While Vanguard Small-Cap ETF has $65.32 billion in assets, iShares Core S&P Small-Cap ETF has $81.63 billion. VB has an expense ratio of 0.05% and IJR charges 0.06%.

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.