Should iShares Core S&P Small-Cap ETF (IJR) Be on Your Investing Radar?

The iShares Core S&P Small-Cap ETF (IJR) was launched on 05/22/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market.The fund is sponsored by Blackrock. It has amassed assets over $85.37 billion, making it the largest ETFs attempting to match the Small Cap Blend segment of the US equity market.Why Small Cap BlendWith more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking.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.CostsInvestors 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 2.10%.Sector Exposure and Top HoldingsIt 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 16.70% of the portfolio. Consumer Discretionary and Healthcare round out the top three.Looking at individual holdings, Blk Csh Fnd Treasury Sl Agency (XTSLA) accounts for about 1.55% of total assets, followed by Alaska Air Group Inc (ALK) and Ati Inc (ATI).Performance and RiskIJR 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 lost about -2.33% so far this year and is up roughly 7.81% in the last one year (as of 02/25/2025). In the past 52-week period, it has traded between $102.13 and $127.38.The ETF has a beta of 1.14 and standard deviation of 21.35% for the trailing three-year period, making it a medium risk choice in the space. With about 685 holdings, it effectively diversifies company-specific risk.AlternativesIShares 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 a great 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 Vanguard Small-Cap ETF (VB) and the iShares Russell 2000 ETF (IWM) track a similar index. While Vanguard Small-Cap ETF has $63.47 billion in assets, iShares Russell 2000 ETF has $69.80 billion. VB has an expense ratio of 0.05% and IWM charges 0.19%.Bottom-LinePassively 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares Core S&P Small-Cap ETF (IJR): ETF Research Reports ATI Inc. (ATI): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports Vanguard Small-Cap ETF (VB): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks