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Size Matters: Comparing Small-Cap and Mid-Cap Value Funds ISCV and IJJ
Yahoo Finance· 2025-12-27 12:34
Core Insights - The article compares two iShares ETFs: ISCV, which targets small-cap value stocks, and IJJ, which focuses on mid-cap value stocks, highlighting their different investment strategies and characteristics [4][5]. Group 1: ETF Characteristics - ISCV tracks a Morningstar index of small-cap U.S. value stocks, encompassing 1,093 holdings, with a sector mix leaning towards financial services (21%), consumer cyclicals (16%), and industrials (13%) [2][4]. - IJJ targets mid-cap value through the S&P 400 Value, consisting of 309 stocks, with a heavier tilt towards financial services (19%), industrials (15%), and consumer cyclicals (12%) [1][4]. - ISCV has a lower expense ratio of 0.06% compared to IJJ's 0.18%, and offers a slightly higher dividend yield of 1.89% versus IJJ's 1.66% [3][9]. Group 2: Performance and Liquidity - IJJ has a larger asset base of approximately $8 billion, providing greater liquidity, while ISCV holds about $575 million in assets [5][9]. - ISCV offers broader diversification with nearly four times as many stocks as IJJ, which may appeal to investors seeking a wider range of small-cap opportunities [5][8]. - The historical performance indicates that IJJ has experienced a gentler drawdown compared to ISCV, which may be more volatile due to its focus on smaller companies [5][10]. Group 3: Investment Considerations - Investors must consider their risk tolerance and target company size when choosing between ISCV and IJJ, as ISCV may offer higher growth potential but with greater volatility, while IJJ provides more stability [7][10]. - Both funds deliver solid value exposure, making the decision largely dependent on whether investors prefer small-cap growth or mid-cap stability [4][10].