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

Core Insights - The iShares MSCI USA Small-Cap Min Vol Factor ETF (SMMV) is a passively managed ETF launched on September 7, 2016, with assets over $326.28 million, targeting the Small Cap Blend segment of the US equity market [1][2] Investment Potential - Small cap companies, defined as those with market capitalizations below $2 billion, present high potential but also come with increased risk [2] Costs - The ETF has an annual operating expense ratio of 0.2%, which is competitive within its peer group, and a 12-month trailing dividend yield of 2.13% [3] Sector Exposure and Holdings - The ETF's largest sector allocation is to Healthcare at approximately 16.2%, followed by Industrials and Financials [4] - Aptargroup Inc (ATR) is the largest individual holding at about 1.5% of total assets, with the top 10 holdings comprising around 13.7% of total assets under management [5] Performance Metrics - SMMV aims to replicate the performance of the MSCI USA Small Cap Minimum Volatility (USD) Index, which includes small-cap U.S. equities with lower volatility characteristics [6] - The ETF has gained approximately 1.93% year-to-date and 8.15% over the past year, with a trading range between $37.87 and $44.35 in the last 52 weeks [7] Alternatives - The ETF holds a Zacks ETF Rank of 3 (Hold), indicating a moderate investment outlook, and is positioned alongside other ETFs like the Vanguard Small-Cap ETF (VB) and iShares Core S&P Small-Cap ETF (IJR), which have significantly larger asset bases and lower expense ratios [8][9] Conclusion - Passively managed ETFs like SMMV are gaining popularity among both institutional and retail investors due to their low costs, transparency, and tax efficiency, making them suitable for long-term investment strategies [10]