iShares to Split Popular Small-Cap ETF

BlackRock’s iShares unit, the world’s largest issuer of exchange traded funds, said it will split the popular iShares Core S&P Small-Cap ETF (NYSEArca: IJR).

“The Board has approved a 2-for-1 split for this fund for shareholders of record as of the close of business on January 13, 2017, payable after the close of trading on January 18, 2017. The 2-for-1 split will lower the share price and increase the number of outstanding shares. The total value of shares outstanding is not affected by the split,” according to an iShares statement.

Up 27% year-to-date, IJR closed just over $138 on Friday. IJR has $26.3 billion in assets under management, making it one of the largest small-cap ETFs on the market. Earlier this year, iShares lowered the annual fee on IJR to 0.07%, or $7 on a $10,000 stake, making it one of the least expensive ETFs tracking smaller stocks.

Small-caps can benefit even as interest rates rise.

Smaller stocks can still navigate through a slowly rising rate environment. Smaller companies, which focus on U.S. markets, are less exposed to a stronger U.S. dollar as rates rise, which would more negatively affect larger corporations with a global footprint. Additionally, periods of rising rates also coincide with expanding economies, which often benefit smaller companies.

IJR is up 13.3% over the past 90 days.

For more information on the small-cap segment, visit our small-cap category.