iShares Core S&P Small-Cap ETF (IJR) Fund Overview

iShares Core S&P Small-Cap ETF (IJR) Financial Services Profile

The iShares Core S&P Small-Cap ETF (IJR) offers investors broad exposure to the U.S. small-cap equity market, tracking the S&P SmallCap 600 Index. As a core holding, it provides diversification and access to companies with high growth potential, operating within the competitive asset management landscape.

What Is the Investment Thesis for IJR?

With a beta of 1.17, IJR exhibits higher volatility compared to the broader market, potentially offering enhanced returns during periods of economic expansion. The ETF's substantial market cap of $102.59 billion indicates strong investor confidence and liquidity. A key value driver is the potential for small-cap companies to outperform larger firms as they grow and innovate. However, investors should be aware of the higher risk associated with small-cap stocks, including increased sensitivity to economic downturns and market volatility. The absence of a dividend yield may deter income-focused investors, but the focus on capital appreciation could appeal to growth-oriented portfolios. The fund's ability to closely track the S&P SmallCap 600 Index is crucial for maintaining its value proposition.

Based on FMP financials and quantitative analysis

IJR Key Highlights

IJR's market capitalization stands at $102.59 billion, reflecting its significant presence in the small-cap ETF market.

• The ETF's beta of 1.17 indicates a higher level of volatility compared to the overall market, potentially leading to greater returns or losses.
• IJR tracks the S&P SmallCap 600 Index, providing exposure to a diversified portfolio of 600 U.S. small-cap companies.
• As an ETF, IJR offers high liquidity, allowing investors to easily buy and sell shares during market hours.
• The absence of a dividend yield means that returns are primarily driven by capital appreciation in the underlying small-cap stocks.

Who Are IJR's Competitors?

IJR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are IJR's Key Strengths?

Low expense ratio compared to actively managed funds.

• Diversified exposure to 600 U.S. small-cap companies.
• High liquidity, allowing for easy trading.
• Managed by BlackRock, a reputable asset manager.

What Are IJR's Weaknesses?

Subject to market volatility, particularly in the small-cap segment.

• No dividend yield, which may deter income-seeking investors.
• Performance is limited by the performance of the S&P SmallCap 600 Index.
• Potential for tracking error, although typically minimal.

What Are the Key Risks for IJR?

Weak fundamentals — a Piotroski F-Score of 2/9 flags soft profitability, leverage or efficiency.

• Economic recession could negatively impact small-cap company earnings and stock prices.
• Rising interest rates could increase borrowing costs for small-cap companies.
• Market volatility could lead to fluctuations in IJR's share price.
• Changes in the composition of the S&P SmallCap 600 Index could affect IJR's performance.
• Geopolitical risks could disrupt global supply chains and impact small-cap companies with international operations.

What Threats Does IJR Face?

• Increased competition from other ETF providers.
• Economic downturns that disproportionately impact small-cap companies.
• Changes in investor sentiment towards small-cap stocks.
• Regulatory changes that could affect the ETF industry.

What Are IJR's Competitive Advantages?

• Low cost: IJR offers a competitive expense ratio, making it a noteworthy option for cost-conscious investors.
• Scale: As one of the largest small-cap ETFs, IJR benefits from economies of scale and high liquidity.
• Brand: IJR is managed by BlackRock, a well-respected and trusted name in the asset management industry.
• Index Tracking: IJR's ability to closely track the S&P SmallCap 600 Index provides investors with predictable and reliable returns.

What Does IJR Do?

The iShares Core S&P Small-Cap ETF (IJR) is designed to provide investors with a convenient and cost-effective way to access the performance of small-capitalization companies in the United States. Launched by BlackRock, one of the world's largest asset managers, IJR seeks to replicate the investment results of the S&P SmallCap 600 Index. This index comprises 600 smaller U.S. companies, offering exposure beyond the large-cap and mid-cap segments of the market. The ETF's holdings span various sectors, reflecting the diverse nature of the U.S. small-cap universe. By investing in IJR, investors gain exposure to a broad range of companies that may offer higher growth potential compared to larger, more established firms. IJR is widely used by both institutional and retail investors as a core building block in diversified investment portfolios, providing a simple and efficient way to participate in the small-cap equity market. Its low expense ratio and high liquidity make it a noteworthy option for investors seeking to enhance their portfolio's diversification and growth potential. The fund's performance is closely monitored against its benchmark, the S&P SmallCap 600 Index, ensuring that it accurately reflects the returns of the small-cap market segment.

What Products and Services Does IJR Offer?

• Tracks the investment results of the S&P SmallCap 600 Index.
• Provides exposure to a diversified portfolio of 600 U.S. small-cap companies.
• Offers a low-cost and convenient way to invest in the small-cap equity market.
• Serves as a core building block for diversified investment portfolios.
• Provides high liquidity, allowing investors to easily buy and sell shares.
• Rebalances its portfolio to maintain alignment with the S&P SmallCap 600 Index.
• Offers transparency by disclosing its holdings on a daily basis.

How Does IJR Make Money?

• Generates revenue through management fees charged as a percentage of assets under management (AUM).
• Benefits from economies of scale as AUM grows, leading to higher profitability.
• Relies on efficient portfolio management to accurately track the S&P SmallCap 600 Index.
• Leverages BlackRock's brand reputation and distribution network to attract investors.

What Industry Does IJR Operate In?

The asset management industry is characterized by intense competition and evolving investor preferences. ETFs like IJR have gained popularity due to their low cost, transparency, and diversification benefits. The small-cap segment, in particular, offers opportunities for growth as these companies often have more room to expand compared to larger, more established firms. However, small-cap stocks can also be more volatile and sensitive to economic conditions. IJR competes with other small-cap ETFs, such as IWM, as well as broader market ETFs like SPLG, IJH and VXF, each offering slightly different exposures and investment strategies. The industry is also influenced by macroeconomic factors, such as interest rates, inflation, and economic growth, which can impact the performance of small-cap companies.

Who Are IJR's Key Customers?

• Retail investors seeking diversified exposure to the U.S. small-cap market.
• Institutional investors, such as pension funds, endowments, and insurance companies.
• Financial advisors and wealth managers who use IJR in client portfolios.
• Hedge funds and other sophisticated investors seeking to implement specific investment strategies.

iShares Core S&P Small-Cap ETF's Piotroski F-Score is 2/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of 7.76 places it in the safe zone, indicating low near-term bankruptcy risk.

IJR Financials

IJR Latest News

IJR Analyst Consensus

IJR MoonshotScore

ETFs that hold IJR

Funds in our ETF coverage that list IJR among the top 10 holdings on their fund page, largest weight first. Each weight is the fund's reported holding weight as of the date in its row.

iShares Core S&P Small-Cap ETF Financials Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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