Looking for broad exposure to the Small Cap Value segment of the US equity market? You should consider the iShares S&P Small-Cap 600 Value ETF (IJS Quick QuoteIJS - Free Report) , a passively managed exchange traded fund launched on July 24, 2000.

The fund is sponsored by Blackrock. It has amassed assets over $7.21 billion, making it one of the larger ETFs attempting to match the Small Cap Value segment of the US equity market.

Why Small Cap Value

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.

While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. 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

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 0.18%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 1.75%.

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 17% of the portfolio. Consumer Discretionary and Industrials round out the top three.

Looking at individual holdings, Eastman Chemical (EMN) accounts for about 1.11% of total assets, followed by Lkq Corp (LKQ) and Blk Csh Fnd Treasury Sl Agency (XTSLA).

Performance and Risk

IJS seeks to match the performance of the S&P SmallCap 600 Value Index before fees and expenses. The S&P SmallCap 600 Value Index measures the performance of the small capitalization value sector of the U.S. equity market.

The ETF return is roughly 3.11% so far this year and is up about 19.59% in the last one year (as of 03/18/2026). In the past 52-week period, it has traded between $83.54 and $126.53.

The ETF has a beta of 1.02 and standard deviation of 21.35% for the trailing three-year period, making it a medium risk choice in the space. With about 487 holdings, it effectively diversifies company-specific risk.

Alternatives

iShares S&P Small-Cap 600 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, IJS is a great option for investors seeking exposure to the Style Box - Small Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.

The iShares Russell 2000 Value ETF (IWN) and the Vanguard Small-Cap Value Index Fund ETF Shares (VBR) track a similar index. While iShares Russell 2000 Value ETF has $12.34 billion in assets, Vanguard Small-Cap Value Index Fund ETF Shares has $32.72 billion. IWN has an expense ratio of 0.24% and VBR charges 0.05%.

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.