Should iShares Core S&P Small-Cap ETF (IJR) Be on Your Investing Radar?

Core Insights - The iShares Core S&P Small-Cap ETF (IJR) is the largest ETF in the Small Cap Blend segment of the US equity market, with assets exceeding $84.97 billion [1] - Small cap companies, defined as those with market capitalizations below $2 billion, are considered high-potential investments but carry higher risks compared to larger counterparts [2] - The ETF has an annual operating expense ratio of 0.06%, making it one of the least expensive options in its category, with a 12-month trailing dividend yield of 1.94% [3] Sector Exposure and Holdings - The ETF has a significant allocation to the Industrials sector, comprising approximately 17.7% of the portfolio, followed by Information Technology and Financials [4] - Key individual holdings include Blk Csh Fnd Treasury Sl Agency (XTSLA) at 1.43% of total assets, Sandisk Corp (SNDK), and Sterling Infrastructure Inc (STRL) [5] Performance Metrics - IJR aims to replicate the performance of the S&P SmallCap 600 Index, with a year-to-date return of about 3.45% and a one-year return of approximately 5.29% as of November 4, 2025 [6] - The ETF has traded between $90.56 and $127.38 over the past 52 weeks [6] - With a beta of 1.10 and a standard deviation of 20.88% over the trailing three years, IJR is categorized as a medium-risk investment [7] Alternatives and Market Position - IJR holds a Zacks ETF Rank of 2 (Buy), indicating strong expected performance based on various factors [8] - Other comparable ETFs include the iShares Russell 2000 ETF (IWM) with $67.85 billion in assets and an expense ratio of 0.19%, and the Vanguard Small-Cap ETF (VB) with $68.23 billion in assets and a lower expense ratio of 0.05% [9] Investment Appeal - Passively managed ETFs like IJR are favored by both institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency [10]