The iShares Core S&P Small-Cap ETF (IJR) was launched on May 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 $92.81 billion, making it the largest ETF attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
Sitting 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.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are 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 1.38%.
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 16.9% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Blk Csh Fnd Treasury Sl Agency (XTSLA) accounts for about 1.24% of total assets, followed by Solstice Advanced Materials Inc (SOLS) and Interdigital Inc (IDCC).
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 about 4.32% so far this year and was up about 17.89% in the last one year (as of 03/10/2026). In the past 52-week period, it has traded between $90.56 and $132.07.
The ETF has a beta of 1.03 and standard deviation of 20.4% for the trailing three-year period, making it a medium risk choice in the space. With about 659 holdings, it effectively diversifies company-specific risk.
Alternatives
iShares 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 an excellent 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 iShares Russell 2000 ETF (IWM) and the Vanguard Small-Cap Index Fund ETF Shares (VB) track a similar index. While iShares Russell 2000 ETF has $71.56 billion in assets, Vanguard Small-Cap Index Fund ETF Shares has $72.04 billion. IWM has an expense ratio of 0.19% and VB charges 0.03%.
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.
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iShares Core S&P Small-Cap ETF (IJR): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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