Is iShares S&P Small-Cap 600 value ETF a good investment?

IShares S&P Small-Cap 600 Value ETF IJS takes an aggressive stance but a profitability bias coupled with superior diversification make it a compelling option in the small-value Morningstar Category. The fund tracks the S&P SmallCap 600 Value Index, which sweeps in stocks from the cheaper half of the S&P SmallCap 600 Index.

What is the S&P Smallcap 600 index fund?

This fund tracks the S&P SmallCap 600 Index, which collects the smallest 600 stocks in the S&P 1500 composite index. Each constituent must meet initial market cap, liquidity, and profitability criteria to be eligible. The final portfolio is weighted by each stock’s float-adjusted market capitalization.

Which stocks qualify for the S&P Smallcap 600 index?

As of July 2023, only stocks with market caps between $850 million and $5.2 billion qualified for the S&P SmallCap 600 Index. The fund's broad reach minimizes stock-specific risk. The portfolio usually holds around 460 stocks with less than 8% of fund assets allocated to its largest 10.