As the market continues to roar back in an election week, ETF investors can’t forget about getting small-cap exposure. Now, investors can get even more discerning with small caps by implementing a value factor screen via a new iShares ETF from BlackRock.
“BlackRock has launched the iShares Factors US Small Cap Value ETF (SVAL, with a 0.30% net expense ratio), which trades on the New York Stock Exchange,” a ThinkAdvisor article said. “The fund’s introduction comes as investor demand continues to grow for value-oriented strategies, according to the company.”
“SVAL seeks to track the Russell 2000 Focused Value Select Index tha’s designed to capture the value factor within the U.S. small cap equity universe, BlackRock said. ’Using the Russell 2000 as the starting universe, the underlying index screens holdings based on their liquidity, volatility, leverage, and research analyst sentiment,” the article added.
Other small cap options from iShares:
iShares Core S&P Small-Cap ETF (IJR ): seeks to track the investment results of the S&P SmallCap 600 (the “underlying index”), which measures the performance of the small-capitalization sector of the U.S. equity market. The fund generally invests at least 90% of its assets in securities of the underlying index and in depositary receipts representing securities of the underlying index. It may invest the remainder of its assets in certain futures, options and swap contracts, cash and cash equivalents, as well as in securities not included in the underlying index, but which the advisor believes will help the fund track the underlying index.
IJR gives investors:
- Exposure to U.S. small cap stocks
- Low cost and tax efficient
- Use at the core of a portfolio to seek long-term growth
iShares S&P Small-Cap 600 Value ETF (IJS ): seeks to track the investment results of the S&P SmallCap 600 Value IndexTM, which measures the performance of the small-capitalization value sector of the U.S. equity market. The fund generally invests at least 90% of its assets in securities of the underlying index and in depositary receipts representing securities of the underlying index. It may invest the remainder of its assets in certain futures, options and swap contracts, cash and cash equivalents, as well as in securities not included in the underlying index, but which the advisor believes will help the fund track the underlying index.
IJS gives investors:
- Exposure to U.S. small-cap stocks that are thought to be undervalued by the market relative to comparable companies
- Low cost and tax efficient
- Use as a complement to a portfolio’s core holdings
