Should iShares MSCI USA Small-Cap Min Vol Factor ETF (SMMV) Be on Your Investing Radar?

The iShares MSCI USA Small-Cap Min Vol Factor ETF (SMMV) was launched on September 7, 2016, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market.The fund is sponsored by Blackrock. It has amassed assets over $280.73 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.Why Small Cap BlendWith more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking.Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics. CostsInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.Annual operating expenses for this ETF are 0.2%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.73%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Healthcare sector -- about 17% of the portfolio. Industrials and Financials round out the top three.Looking at individual holdings, Pinnacle West Corp (PNW) accounts for about 1.57% of total assets, followed by New York Times Class A (NYT) and Royal Gold Inc (RGLD).The top 10 holdings account for about 7.35% of total assets under management.Performance and RiskSMMV seeks to match the performance of the MSCI USA Small Cap Minimum Volatility (USD) Index before fees and expenses. The MSCI USA Small Cap Minimum Volatility (USD) Index comprises of small-capitalization U.S. equities that, in the aggregate, have lower volatility characteristics relative to the small-capitalization U.S. equity market.The ETF has added roughly 3.29% so far this year and was up about 7.16% in the last one year (as of 06/11/2026). In the past 52-week period, it has traded between $41.17 and $46.27.The ETF has a beta of 0.61 and standard deviation of 11.82% for the trailing three-year period. With about 333 holdings, it effectively diversifies company-specific risk.AlternativesiShares MSCI USA Small-Cap Min Vol Factor ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SMMV is a good option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.The Vanguard Small-Cap Index Fund ETF Shares (VB) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While Vanguard Small-Cap Index Fund ETF Shares has $77.24 billion in assets, iShares Core S&P Small-Cap ETF has $104.05 billion. VB has an expense ratio of 0.03% and IJR charges 0.06%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks