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Should iShares S&P Mid-Cap 400 Value ETF (IJJ) Be on Your Investing Radar?

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Looking for broad exposure to the Mid Cap Value segment of the US equity market? You should consider the iShares S&P Mid-Cap 400 Value ETF (IJJ - Free Report) , a passively managed exchange traded fund launched on July 24, 2000.

The fund is sponsored by Blackrock. It has amassed assets over $8.11 billion, making it one of the larger ETFs attempting to match the Mid Cap Value segment of the US equity market.

Why Mid Cap Value

Mid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. These types of companies, then, have a good balance of stability and growth potential.

Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.18%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.78%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector -- about 20.4% of the portfolio. Industrials and Consumer Discretionary round out the top three.

Looking at individual holdings, Flex Ltd (FLEX) accounts for about 1.41% of total assets, followed by Us Foods Holding Corp (USFD) and Fidelity National Financial Inc (FNF).

The top 10 holdings account for about 7.89% of total assets under management.

Performance and Risk

IJJ seeks to match the performance of the S&P MidCap 400 Value Index before fees and expenses. The S&P MidCap 400 Value Index measures the performance of the mid-capitalization value sector of the U.S. equity market. It is a subset of the S&P MidCap 400 and consists of those stocks in the S&P MidCap 400 exhibiting the strongest value characteristics.

The ETF has gained about 6.05% so far this year and is up about 14.01% in the last one year (as of 09/09/2025). In the past 52-week period, it has traded between $103.88 and $135.52.

The ETF has a beta of 1.06 and standard deviation of 19.51% for the trailing three-year period, making it a medium risk choice in the space. With about 301 holdings, it effectively diversifies company-specific risk.

Alternatives

iShares S&P Mid-Cap 400 Value ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IJJ is a great option for investors seeking exposure to the Style Box - Mid Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.

The iShares Russell Mid-Cap Value ETF (IWS) and the Vanguard Mid-Cap Value ETF (VOE) track a similar index. While iShares Russell Mid-Cap Value ETF has $14.12 billion in assets, Vanguard Mid-Cap Value ETF has $18.69 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%.

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.


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