From Nasdaq, Inc.: 2024-06-10 06:20:03

The iShares Morningstar Small-Cap ETF (ISCB) offers exposure to the Small Cap Blend segment of the US equity market. With over $214.61 million in assets, this low-cost ETF seeks to match the performance of the Morningstar US Small Cap Extended Index before fees and expenses. It has a 12-month trailing dividend yield of 1.12%.

Investing in small cap companies can be lucrative but risky. Blend ETFs, like ISCB, provide a mix of growth and value stocks with lower expenses. With an annual operating expense of 0.04%, ISCB has a sector exposure of 18.30% in Industrials, followed by Financials and Consumer Discretionary. The top 10 holdings account for 3.14% of total assets.

ISCB has performed well, returning about 0.51% this year and 10.95% last year. With a beta of 1.17 and standard deviation of 21.91%, this ETF effectively diversifies company-specific risk. Investors seeking exposure to the Small Cap Blend area should consider ISCB as a reasonable option. Close alternatives include IWM and IJR with similar index tracking but varied assets and expense ratios.

Passively managed ETFs like ISCB are appealing to investors for their low costs, transparency, and long-term potential. Retail and institutional investors are turning to these funds for flexible, tax-efficient investment options. For more information on ETFs and investment strategies, visit the Zacks ETF Center.

Read more at Nasdaq: Should iShares Morningstar Small-Cap ETF (ISCB) Be on Your Investing Radar?