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Should iShares Core S&P Small-Cap ETF (IJR) Be on Your Investing Radar?
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Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the iShares Core S&P Small-Cap ETF (IJR - Free Report) is a passively managed exchange traded fund launched on May 22, 2000.
The fund is sponsored by Blackrock. It has amassed assets over $84.97 billion, making it the largest ETF 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.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
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 1.94%.
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 17.7% of the portfolio. Information Technology and Financials round out the top three.
Looking at individual holdings, Blk Csh Fnd Treasury Sl Agency (XTSLA) accounts for about 1.43% of total assets, followed by Sandisk Corp (SNDK) and Sterling Infrastructure Inc (STRL).
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 return is roughly 3.45% so far this year and it's up approximately 5.29% in the last one year (as of 11/04/2025). In the past 52-week period, it has traded between $90.56 and $127.38.
The ETF has a beta of 1.10 and standard deviation of 20.88% for the trailing three-year period, making it a medium risk choice in the space. With about 638 holdings, it effectively diversifies company-specific risk.
Alternatives
iShares Core S&P Small-Cap 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, IJR is an excellent 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 iShares Russell 2000 ETF (IWM) and the Vanguard Small-Cap ETF (VB) track a similar index. While iShares Russell 2000 ETF has $67.85 billion in assets, Vanguard Small-Cap ETF has $68.23 billion. IWM has an expense ratio of 0.19% and VB charges 0.05%.
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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Should iShares Core S&P Small-Cap ETF (IJR) Be on Your Investing Radar?
Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the iShares Core S&P Small-Cap ETF (IJR - Free Report) is a passively managed exchange traded fund launched on May 22, 2000.
The fund is sponsored by Blackrock. It has amassed assets over $84.97 billion, making it the largest ETF 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.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
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 1.94%.
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 17.7% of the portfolio. Information Technology and Financials round out the top three.
Looking at individual holdings, Blk Csh Fnd Treasury Sl Agency (XTSLA) accounts for about 1.43% of total assets, followed by Sandisk Corp (SNDK) and Sterling Infrastructure Inc (STRL).
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 return is roughly 3.45% so far this year and it's up approximately 5.29% in the last one year (as of 11/04/2025). In the past 52-week period, it has traded between $90.56 and $127.38.
The ETF has a beta of 1.10 and standard deviation of 20.88% for the trailing three-year period, making it a medium risk choice in the space. With about 638 holdings, it effectively diversifies company-specific risk.
Alternatives
iShares Core S&P Small-Cap 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, IJR is an excellent 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 iShares Russell 2000 ETF (IWM) and the Vanguard Small-Cap ETF (VB) track a similar index. While iShares Russell 2000 ETF has $67.85 billion in assets, Vanguard Small-Cap ETF has $68.23 billion. IWM has an expense ratio of 0.19% and VB charges 0.05%.
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.