We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should iShares Core S&P Small-Cap ETF (IJR) Be on Your Investing Radar?
Read MoreHide Full Article
Launched on 05/22/2000, the iShares Core S&P Small-Cap ETF (IJR - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Blend segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $84.05 billion, making it the largest 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 are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 1.29%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. 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 16.50% of the portfolio. Consumer Discretionary and Information Technology round out the top three.
Looking at individual holdings, Blk Csh Fnd Treasury Sl Agency- (XTSLA) accounts for about 1.74% of total assets, followed by Fabrinet- (FN - Free Report) and Abercrombie And Fitch Class A- (ANF - Free Report) .
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 has added roughly 5.04% so far this year and is up about 15.31% in the last one year (as of 08/19/2024). In the past 52-week period, it has traded between $87.61 and $118.34.
The ETF has a beta of 1.12 and standard deviation of 21.64% for the trailing three-year period, making it a medium risk choice in the space. With about 690 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P Small-Cap 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, IJR 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 - Free Report) and the iShares Russell 2000 ETF (IWM - Free Report) track a similar index. While Vanguard Small-Cap ETF has $57.08 billion in assets, iShares Russell 2000 ETF has $65.68 billion. VB has an expense ratio of 0.05% and IWM charges 0.19%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should iShares Core S&P Small-Cap ETF (IJR) Be on Your Investing Radar?
Launched on 05/22/2000, the iShares Core S&P Small-Cap ETF (IJR - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Blend segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $84.05 billion, making it the largest 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 are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 1.29%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. 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 16.50% of the portfolio. Consumer Discretionary and Information Technology round out the top three.
Looking at individual holdings, Blk Csh Fnd Treasury Sl Agency- (XTSLA) accounts for about 1.74% of total assets, followed by Fabrinet- (FN - Free Report) and Abercrombie And Fitch Class A- (ANF - Free Report) .
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 has added roughly 5.04% so far this year and is up about 15.31% in the last one year (as of 08/19/2024). In the past 52-week period, it has traded between $87.61 and $118.34.
The ETF has a beta of 1.12 and standard deviation of 21.64% for the trailing three-year period, making it a medium risk choice in the space. With about 690 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P Small-Cap 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, IJR 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 - Free Report) and the iShares Russell 2000 ETF (IWM - Free Report) track a similar index. While Vanguard Small-Cap ETF has $57.08 billion in assets, iShares Russell 2000 ETF has $65.68 billion. VB has an expense ratio of 0.05% and IWM charges 0.19%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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.