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

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

Profile:

• Focus: IJR tracks the S&P SmallCap 600 Index, providing exposure to approximately 600 small-cap companies in the US. Its asset allocation is primarily focused on equities, representing sectors like technology, consumer discretionary, healthcare, financials, and industrials.
• Investment Strategy: IJR employs a passive management strategy, aiming to replicate the performance of the underlying index by holding its constituent stocks in similar proportions.

Objective:

• The primary investment goal of IJR is to provide investors with broad exposure to the US small-cap market, enabling them to participate in the potential growth and value appreciation of these companies.

Issuer:

• Company: BlackRock, the world's largest asset manager, issues IJR through its iShares brand.
• Reputation and Reliability: BlackRock boasts a strong reputation and proven reliability, managing over $9 trillion in assets globally.
• Management: The iShares team possesses extensive experience and expertise in managing index funds and ETFs.

Market Share:

• IJR holds a significant market share in the US small-cap ETF space, accounting for roughly 23% of the total assets under management in this category.

Total Net Assets:

• As of October 26, 2023, IJR has approximately $52.8 billion in total net assets.

Moat:

• Low Expense Ratio: IJR boasts a low expense ratio of 0.03%, making it one of the most cost-effective ways to access the small-cap market.
• Brand Recognition: BlackRock's brand recognition and reputation provide IJR with an edge in attracting investors.
• Liquidity: High average daily trading volume ensures investors can easily buy and sell IJR shares.

Financial Performance:

• IJR has historically delivered strong returns exceeding the S&P 500 in certain periods. Its performance has been influenced by various factors, including economic conditions and market sentiment.

Growth Trajectory:

• The US small-cap market is expected to continue experiencing growth, driven by innovation and potential for higher returns compared to larger companies.

Liquidity:

• IJR has a high average trading volume of over 17 million shares, indicating good liquidity and ease of trading.
• The bid-ask spread is typically tight, signifying low transaction costs.

Market Dynamics:

• Economic growth, interest rate changes, investor sentiment, and sector-specific factors can impact IJR's performance.

Competitors:

• Key competitors include Vanguard Small-Cap ETF (VB), iShares Russell 2000 ETF (IWM), and SPDR S&P SmallCap 600 ETF (SLY).

Expense Ratio:

• IJR's expense ratio is 0.03%, which is significantly lower than the average for actively managed small-cap funds.

Investment Approach and Strategy:

• IJR passively tracks the S&P SmallCap 600 Index, investing in the same proportions as the index constituents.

Key Points:

• Provides broad exposure to the US small-cap market.
• Low expense ratio and high liquidity.
• Potential for higher returns compared to large-cap stocks.
• Subject to higher volatility than large-cap investments.

Risks:

• Small-cap stocks are inherently more volatile than large-cap stocks.
• Market downturns can significantly impact IJR's performance.
• Sector-specific risks associated with the companies in the index.

Who Should Consider Investing:

• Investors seeking exposure to the US small-cap market with a long-term investment horizon.
• Investors comfortable with higher volatility for potentially higher returns.

Fundamental Rating Based on AI:

• Rating: 8/10
• Justification: IJR's strong track record, low expense ratio, high liquidity, and potential for growth position it favorably. However, its exposure to small-cap companies also implies higher volatility.

Resources and Disclaimers:

• This information is based on data available as of October 26, 2023, and may change over time.
• Please consult your financial advisor before making investment decisions.