Should iShares MSCI USA Small-Cap Min Vol Factor ETF (SMMV) Be on Your Investing Radar?

Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the iShares MSCI USA Small-Cap Min Vol Factor ETF (SMMV) is a passively managed exchange traded fund launched on 09/07/2016.The fund is sponsored by Blackrock. It has amassed assets over $285.42 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.Why Small Cap BlendSitting 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.CostsExpense 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 0.20%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.97%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Healthcare sector--about 17.50% of the portfolio. Financials and Industrials round out the top three.Looking at individual holdings, Old Republic International Corp (ORI) accounts for about 1.63% of total assets, followed by Royal Gold Inc (RGLD) and Pinnacle West Corp (PNW).The top 10 holdings account for about 14.46% of total assets under management.Performance and RiskSMMV seeks to match the performance of the MSCI USA Small Cap Minimum Volatility (USD) Index before fees and expenses. The MSCI USA Small Cap Minimum Volatility (USD) Index comprises of small-capitalization U.S. equities that, in the aggregate, have lower volatility characteristics relative to the small-capitalization U.S. equity market.The ETF has added about 0.53% so far this year and is up about 15.16% in the last one year (as of 03/26/2025). In the past 52-week period, it has traded between $35.43 and $44.35.The ETF has a beta of 0.80 and standard deviation of 13.76% for the trailing three-year period. With about 287 holdings, it effectively diversifies company-specific risk.AlternativesIShares MSCI USA Small-Cap Min Vol Factor 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, SMMV 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 iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $67.75 billion in assets, iShares Core S&P Small-Cap ETF has $80.72 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.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 MSCI USA Small-Cap Min Vol Factor ETF (SMMV): ETF Research Reports Pinnacle West Capital Corporation (PNW): Free Stock Analysis Report Old Republic International Corporation (ORI): Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports Royal Gold, Inc. (RGLD): Free Stock Analysis Report iShares Core S&P Small-Cap ETF (IJR): 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