Exchange Traded Funds (ETFs)

Invest in Small-Cap U.S. Stocks with This Fund

iShares Core S&P Small-Cap ETF (NYSEARCA:IJR) tracks a market-cap-weighted index of primarily small-cap U.S. stocks. The S&P Committee selects 600 stocks representing about 3% of the publicly available market.

The index measures the performance of the small-capitalization sector of the U.S. equity market, as determined by S&P Dow Jones Indices (SPDJI). The fund generally will invest at least 80% of its assets in the component securities of its index and in investments that have economic characteristics that are substantially identical to the component securities of its index and may invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents.

IJR has $68 billion in assets under management and an average spread of 0.01%. It is currently trading around $101 a share, giving it a 1.70% dividend yield. Its expense ratio is 0.06%, meaning it is relatively inexpensive to hold in relation to other exchange-traded funds.

Source: www.stockcharts.com

Why choose IJR? Exposure to U.S. small cap stocks is its primary benefit. The fund also has low cost attached to it and is tax efficient. It also makes for a good core of a portfolio to seek long-term growth.

However, as with any opportunity, potential investors should conduct their own due diligence in deciding whether or not this fund fits their own individual investing needs and portfolio goals.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

Jim Woods

Jim Woods is a 20-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor. Jim is the editor of Intelligence Report, Investing Edge, the Bullseye Stock Trader, and The Deep Woods (formerly the Weekly ETF Report). His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. His articles have appeared on many leading financial websites, including StockInvestor.com, InvestorPlace.com, Main Street Investor, MarketWatch, Street Authority, Human Events and many others. Jim formerly worked with Investor’s Business Daily founder William J. O’Neil, helping to author training courses in the CANSLIM stock-picking methodology. The independent firm TipRanks rates Jim the No. 3 financial blogger in the world (out of more than 6,000). TipRanks calculates that, since 2012, he's made 361 successful recommendations out of 499 total, earning a success rate of 72% and a +15.3% average return per recommendation. He is known in professional and personal circles as “The Renaissance Man,” because his expertise includes such varied fields as composing and performing music; Western horsemanship, combat marksmanship, martial arts, auto racing and bodybuilding. Jim holds a BA in philosophy from the University of California, Los Angeles, and is a former U.S. Army paratrooper. A self-described “radical for capitalism,” he celebrates the virtue of making money from his Southern California horse ranch.