A Durable, Cost-Effective Small-Cap ETF

The $45.18 billion IJR holds 601 stocks and charges 0.07% per year, making it one of the most cost-effective domestic small-cap ETFs on the market. None of IJR’s holdings exceed weights of 0.56%.

Industrials are IJR’s largest sector weight at 19.76% while financial services and technology names combine for 32% of the fund’s roster.

“During the past decade through June 2018, the fund beat the category average by 3.3 percentage points annually with similar risk,” said Morningstar. “Much of this relative outperformance can be attributed to the fund’s cost advantage. Because this index fund is always fully invested, it suffered a larger drawdown than the category average during the financial crisis. But its smaller cash drag pays off during bull markets.”

Morningstar has a Gold rating on IJR.

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