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.
Should You Buy a Small Cap or Mid Cap ETF? We Take a Look at Two iShares ETFs
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.
