Should You Buy a Small Cap or Mid Cap ETF? We Take a Look at Two iShares ETFs
Explore how portfolio size, sector exposure, and risk profiles set these two value ETFs apart for investors seeking different market segments.
Overview
Investors seeking to diversify should hold some of their equities outside of the large-cap U.S. stocks that dominate investing headlines. The iShares Morningstar Small-Cap Value ETF (NYSEMKT:ISCV) offers lower costs and broader diversification, while the iShares S&P Mid-Cap 400 Value ETF (NYSEMKT:IJJ) provides exposure to larger, historically more stable mid-sized companies.
Both funds target undervalued segments of the U.S. market but focus on different size tiers, offering distinct risk-reward profiles. The iShares S&P Mid-Cap 400 Value ETF provides exposure to mid-sized companies that have matured past the small-cap phase, while the iShares Morningstar Small-Cap Value ETF captures smaller firms that may offer higher growth potential but come with increased volatility.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.