iShares Morningstar Small-Cap Value ETF (JKL)JKL

ETF iShares Morningstar Small-Cap Value ETF Overview:

Profile:

iShares Morningstar Small-Cap Value ETF (IJS) is a passively managed ETF that tracks the Morningstar US Small-Cap Value Index. It invests primarily in small-cap value stocks of US companies.

Objective:

The primary objective of IJS is to provide long-term capital appreciation by investing in a portfolio of small-cap value stocks with high dividend yields and low price-to-book ratios.

Issuer:

BlackRock

Reputation and Reliability:

BlackRock is the world's largest asset manager, with a long-standing reputation for excellence and reliability. The firm manages over $10 trillion in assets and has a strong track record of delivering investment results.

Management:

The ETF is managed by a team of experienced investment professionals at BlackRock. The team has a deep understanding of the small-cap value market and a proven ability to select stocks with strong potential for growth.

Market Share:

IJS is one of the largest small-cap value ETFs in the market, with over $27 billion in assets under management. It has a significant market share in the small-cap value ETF category.

Total Net Assets:

As of October 26, 2023, IJS has total net assets of $27.12 billion.

Moat:

IJS has a few competitive advantages:

• Low fees: The ETF has an expense ratio of 0.25%, which is lower than many of its competitors.
• Diversification: The ETF invests in a wide range of small-cap value stocks, which helps to reduce risk.
• Track record: The ETF has a strong track record of outperforming its benchmark index.

Financial Performance:

Over the past 5 years, IJS has returned an average of 14.7% per year, outperforming its benchmark index by 3.2% per year.

Benchmark Comparison:

IJS has consistently outperformed its benchmark index, the Morningstar US Small-Cap Value Index, over different time periods.

Growth Trajectory:

The small-cap value market is expected to continue to grow in the coming years, driven by strong economic growth and rising interest rates. This bodes well for IJS's future prospects.

Liquidity:

• Average Trading Volume: IJS has an average trading volume of over 10 million shares per day, making it a very liquid ETF.
• Bid-Ask Spread: The bid-ask spread for IJS is typically very narrow, indicating that it is easy to buy and sell shares of the ETF.

Market Dynamics:

The performance of IJS is affected by several factors, including:

• Economic growth: Strong economic growth tends to benefit small-cap stocks, as they are more sensitive to changes in the economy.
• Interest rates: Rising interest rates can make it more expensive for companies to borrow money, which can hurt their earnings growth.
• Market sentiment: Investor sentiment can also impact the performance of small-cap stocks.

Competitors:

Key competitors of IJS include:

• Vanguard Small-Cap Value ETF (VISV)
• Schwab Small-Cap Value ETF (XSZV)
• iShares S&P SmallCap 600 Value ETF (IJJ)

Expense Ratio:

The expense ratio for IJS is 0.25%.

Investment Approach and Strategy:

Strategy: IJS tracks the Morningstar US Small-Cap Value Index. Composition: The ETF invests in a basket of small-cap value stocks. The index uses a quantitative approach to select stocks with high dividend yields, low price-to-book ratios, and strong growth potential.

Key Points:

• IJS is a low-cost, diversified, and actively managed ETF that provides exposure to the small-cap value market.
• The ETF has a strong track record of outperforming its benchmark index.
• IJS is a suitable investment for investors who are looking for long-term capital appreciation and income.

Risks:

• Volatility: Small-cap stocks are generally more volatile than large-cap stocks.
• Market risk: The value of IJS can decline if the stock market falls.
• Interest rate risk: Rising interest rates can hurt the performance of small-cap value stocks.

Who Should Consider Investing:

IJS is a suitable investment for investors who:

• Have a long-term investment horizon.
• Are comfortable with volatility.
• Are looking for exposure to the small-cap value market.

Fundamental Rating Based on AI:

Based on an AI-based rating system that considers financial health, market position, and future prospects, IJS receives a rating of 8 out of 10.

Resources and Disclaimers:

• Morningstar: https://www.morningstar.com/etfs/arcx/ijs/quote
• BlackRock: https://www.ishares.com/us/products/239440/ishares-morningstar-smallcap-value-etf
• Yahoo Finance: https://finance.yahoo.com/quote/IJS/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.