Should iShares S&P Small-Cap 600 Value ETF (IJS) Be on Your Investing Radar?

Launched on 07/24/2000, the iShares S&P Small-Cap 600 Value ETF (IJS) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Value segment of the US equity market.The fund is sponsored by Blackrock. It has amassed assets over $7.01 billion, making it one of the larger ETFs attempting to match the Small Cap Value segment of the US equity market.Why Small Cap ValueSitting 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.Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.CostsSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.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 1.91%.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 Financials sector--about 17.40% of the portfolio. Consumer Discretionary and Industrials round out the top three.Looking at individual holdings, Blk Csh Fnd Treasury Sl Agency (XTSLA) accounts for about 1.96% of total assets, followed by Vf Corp (VFC) and Qorvo Inc (QRVO).Performance and RiskIJS 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 has lost about -6.60% so far this year and is up about 3.95% in the last one year (as of 03/06/2025). In the past 52-week period, it has traded between $94.12 and $118.05.The ETF has a beta of 1.17 and standard deviation of 21.70% for the trailing three-year period, making it a medium risk choice in the space. With about 522 holdings, it effectively diversifies company-specific risk.AlternativesIShares 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 an outstanding 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 Avantis U.S. Small Cap Value ETF (AVUV) and the Vanguard Small-Cap Value ETF (VBR) track a similar index. While Avantis U.S. Small Cap Value ETF has $14.87 billion in assets, Vanguard Small-Cap Value ETF has $30.08 billion. AVUV has an expense ratio of 0.25% and VBR charges 0.07%.Bottom-LineAn 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.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 S&P Small-Cap 600 Value ETF (IJS): ETF Research Reports V.F. Corporation (VFC): Free Stock Analysis Report Qorvo, Inc. (QRVO): Free Stock Analysis Report Vanguard Small-Cap Value ETF (VBR): ETF Research Reports Avantis U.S. Small Cap Value ETF (AVUV): 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