iShares Core S&P Small-Cap ETF (IJR) is an exchange-traded fund that seeks to track the performance of U.S. small-cap companies. The ETF follows the S&P SmallCap 600 Index, composed of small caps. The fund is managed by BlackRock and trades under the ticker IJR on NYSE Arca.
Classified as a U.S. equity ETF, IJR aims to reflect, before fees and expenses, the performance of its benchmark index. The fund employs a passive management strategy, maintaining a portfolio structured to replicate the composition and criteria defined by the index methodology.
The S&P SmallCap 600 Index consists of U.S. small-cap companies selected based on objective eligibility criteria, including liquidity and representativeness requirements. Constituents are weighted according to free-float-adjusted market capitalization. The index undergoes periodic reviews and rebalancing, which are reflected in the ETF’s holdings.
Diversification and sector exposure
IJR provides broad exposure to the U.S. small-cap segment across multiple sectors of the economy, including:
- Industrials.
- Information technology.
- Health care.
- Financials.
- Consumer discretionary.
- Consumer staples.
- Energy.
- Materials.
- Utilities.
Sector allocation reflects the diversity of the U.S. small-cap universe.
Structure and costs
IJR shares trade on the secondary market throughout the trading session. Creation and redemption are conducted by authorized participants, helping maintain alignment between the ETF’s market price and its net asset value (NAV).
The fund charges a management fee and does not apply a performance fee. IJR distributes income periodically, primarily derived from dividends paid by its underlying holdings.
History and evolution of the ETF
iShares Core S&P Small-Cap ETF was launched in 2000 during a period of expansion in capitalization-segmented equity ETFs in the United States.
In recent years, IJR has reflected developments in the U.S. small-cap segment, including the post-pandemic recovery, heightened sensitivity to the interest rate tightening cycle that began in 2022, and fluctuations tied to domestic economic growth expectations.
The fund’s behavior has been closely linked to the relative performance of small-cap companies compared to larger-cap peers.