What Is the IJR ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
The iShares Core S&P Small-Cap ETF (IJR) is a core small-cap holding that offers broad diversification across US small caps, with an ultra-low expense ratio and quarterly dividends as its strengths. Differences in index and selection criteria versus VB, IWM, VTWO, and SPSM are the key factors in choosing among them.
SubscribeWhat Is the iShares Core S&P Small-Cap ETF?
It is a passive ETF managed by BlackRock iShares that tracks the S&P SmallCap 600 Index. It holds US small-cap stocks that pass profitability and financial soundness screens, weighted by market capitalization.
It suits asset allocation investors who want to add a small-cap weighting to a large-cap core, as well as long-term investors who want to manage broad market diversification separately by market-cap segment.
It is a passive (index-tracking) ETF managed by BlackRock iShares.
How Do You Invest in the iShares Core S&P Small-Cap ETF?
| Item | Details |
|---|---|
| Tracked Index | S&P SmallCap 600 |
| Management Style | Passive (index tracking) |
| Market-Cap Segment | US small caps |
| Dividend Frequency | Quarterly dividends |
| Expense Ratio | 0.06% |
| Issuer | BlackRock iShares |
The key difference from ETFs that track the Russell 2000 is that the S&P SmallCap 600 Index includes only stocks that pass profitability and financial soundness criteria. Even within the same small-cap category, it tends to hold a smaller share of struggling companies than IWM or VTWO, which gives it a structurally somewhat milder volatility profile.
- Profitability and financial soundness filtering
- Core holding tracking the S&P SmallCap 600
- Ultra-low-cost small-cap ETF
iShares Core S&P Small-Cap ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $106.9B, and the expense ratio is 0.06% per year.
Although VB, IWM, SCHA, VTWO, and SPSM shown in the table are all classified as US small-cap ETFs, their holdings differ because of the tracked index (S&P SmallCap 600 vs. CRSP vs. Russell 2000) and whether a profitability filter is applied.
iShares Core S&P Small-Cap ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeIn risk-on phases, it posted notably stronger gains than large-cap core ETFs, while volatility expanded more sharply during periods of rising interest rates and widening credit spreads.
It belongs to the group of mega small-cap ETFs that attract inflows from both small-cap rallies and market-cap diversification allocations. Inflows can also become pronounced during rate-cut phases or when risk appetite recovers.
iShares Core S&P Small-Cap ETF Pros and Cons
Its ultra-low expense ratio and profitability filtering are the main strengths, while the volatility and interest rate sensitivity typical of small caps are drawbacks to consider in advance.
💪 Key Strengths
⚠️ Points to Watch
iShares Core S&P Small-Cap ETF Alternative ETFs and Related Products
Among those shown in the table, VB is a direct substitute tracking the CRSP US Small Cap index and tends to hold more stocks. IWM and VTWO track the Russell 2000 without a profitability filter, so they may carry a larger share of struggling companies. SCHA is a variant tracking Schwab's small-cap index, and SPSM is a variant tracking the same S&P SmallCap 600. To combine with mid caps, you can consider IJH or VO. For pairing with a large-cap core, consider VOO or IVV, and for broad market exposure, variants such as VTI.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VB | Vanguard Morningstar Small-Cap ETF | $290.05 | -1.6% | $79.8B | 0.03% | 1.26% | +14.6% |
 IWM | iShares Russell 2000 Index Fund | $279.33 | -1.6% | $76.8B | 0.19% | 0.98% | +14.1% |
 SCHA | Schwab U.S. Small-Cap ETF | $32.99 | -1.6% | $22.3B | 0.03% | 1.12% | +18.2% |
 VTWO | Vanguard Russell 2000 Index ETF | $112.85 | -1.6% | $17.1B | 0.06% | 1.2% | +14.0% |
 SPSM | State Street SPDR Portfolio S&P 600TM Small Cap ETF | $54.53 | -1.2% | $16.2B | 0.03% | 1.51% | +18.9% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 FORM | FormFactor Inc | 0.01% | $87.53 | -10.2% | $6.8B | 40.0 | - |
 VSAT | Viasat Inc | 0.01% | $77.02 | -1.2% | $10.6B | - | - |
 MOH | Molina Healthcare Inc | 0.01% | $204.78 | +2.9% | $10.7B | - | - |
 AGX | Argan Inc | 0.01% | $344.11 | -3.6% | $4.8B | 27.2 | 0.61% |
 BTSG | BrightSpring Health Services Inc | 0.01% | $66.89 | +11.1% | $13.2B | 50.0 | - |
 ESI | Element Solutions Inc | 0.01% | $34.27 | -3.2% | $8.3B | 40.7 | 0.7% |
 MXL | MaxLinear Inc | 0.01% | $67.47 | -5.8% | $6.1B | - | - |
 EMN | Eastman Chemical Co | 0.01% | $66.53 | -2.1% | $7.6B | 17.3 | 5.08% |
 KRYS | Krystal Biotech Inc | 0.01% | $332.29 | +2.4% | $9.8B | 41.6 | - |
iShares Core S&P Small-Cap ETF Investor Checkpoints
Here are the points to review before investing in IJR. Broad diversification across US small caps is its strength, but it is advisable to double-check small-cap volatility, interest rate sensitivity, and currency effects before buying, and to review your position size and market-cap diversification strategy together.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the impact of cumulative long-term costs | Among the lowest |
| 📊 Profitability Filter | Differentiation from Russell 2000 ETFs | Financial soundness criteria |
| 📉 Volatility | Short-term volatility versus large caps | Higher |
| 💱 Exchange Rate | Impact on returns converted to won | No currency hedge |
Small-cap volatility, interest rate sensitivity, and currency fluctuations are the main drivers of short-term volatility. During periods of widening credit spreads, drawdowns can be larger than for core ETFs, so it is worth reviewing the weight split with a large-cap core as well.
It is regarded as a standard choice for long-term, broad diversification across US small caps. If you want broad exposure without a profitability filter, IWM or VTWO would be suitable variants. For combining with mid caps, consider IJH or VO, and for broad market exposure, VTI.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of May 22, 2026.
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