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Should iShares U.S. Small-Cap Equity Factor ETF (SMLF) Be on Your Investing Radar?
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Looking for broad exposure to the Small Cap Blend segment of the US equity market? You should consider the iShares U.S. Small-Cap Equity Factor ETF (SMLF - Free Report) , a passively managed exchange traded fund launched on April 28, 2015.
The fund is sponsored by Blackrock. It has amassed assets over $1.94 billion, making it one of the larger ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but 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 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.34%.
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 Industrials sector -- about 19% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Emcor Group Inc (EME) accounts for about 1.04% of total assets, followed by Carvana Class A (CVNA) and Jabil Inc (JBL).
Performance and Risk
SMLF seeks to match the performance of the MSCI USA Small Cap Diversified Multiple-Factor Index before fees and expenses. The STOXX U.S. Small-Cap Equity Factor Index (USD) composed of U.S. small-capitalization stocks that have favourable exposure to target style factors subject to constraints.
The ETF return is roughly 4.17% so far this year and was up about 8.77% in the last one year (as of 07/31/2025). In the past 52-week period, it has traded between $54.28 and $74.15.
The ETF has a beta of 1.07 and standard deviation of 20.88% for the trailing three-year period, making it a high risk choice in the space. With about 861 holdings, it effectively diversifies company-specific risk.
Alternatives
iShares U.S. Small-Cap Equity 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, SMLF is a good 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 $64.81 billion in assets, iShares Core S&P Small-Cap ETF has $80.76 billion. VB has an expense ratio of 0.05% and IJR charges 0.06%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also 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 U.S. Small-Cap Equity Factor ETF (SMLF) 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 U.S. Small-Cap Equity Factor ETF (SMLF - Free Report) , a passively managed exchange traded fund launched on April 28, 2015.
The fund is sponsored by Blackrock. It has amassed assets over $1.94 billion, making it one of the larger ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but 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 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.34%.
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 Industrials sector -- about 19% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Emcor Group Inc (EME) accounts for about 1.04% of total assets, followed by Carvana Class A (CVNA) and Jabil Inc (JBL).
Performance and Risk
SMLF seeks to match the performance of the MSCI USA Small Cap Diversified Multiple-Factor Index before fees and expenses. The STOXX U.S. Small-Cap Equity Factor Index (USD) composed of U.S. small-capitalization stocks that have favourable exposure to target style factors subject to constraints.
The ETF return is roughly 4.17% so far this year and was up about 8.77% in the last one year (as of 07/31/2025). In the past 52-week period, it has traded between $54.28 and $74.15.
The ETF has a beta of 1.07 and standard deviation of 20.88% for the trailing three-year period, making it a high risk choice in the space. With about 861 holdings, it effectively diversifies company-specific risk.
Alternatives
iShares U.S. Small-Cap Equity 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, SMLF is a good 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 $64.81 billion in assets, iShares Core S&P Small-Cap ETF has $80.76 billion. VB has an expense ratio of 0.05% and IJR charges 0.06%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also 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.