Is IJR a good ETF?
IJR is the iShares S&P Small-Cap ETF from iShares. It tracks the S&P SmallCap 600 Index. We classify it under US, Small-Cap, and Market-Cap. With about $822 million in assets it is a solidly established fund. Listed on the ASX since 2007-10-29 (about 19 years ago).
On a total-return basis, IJR has delivered 10.62% a year over 10 years (ranked 37th of 110 ETFs we track), 6.71% a year over 5 years (ranked 97th of 189 ETFs we track), 11.65% a year over 3 years (ranked 117th of 236 ETFs we track), and 10.26% a year over 1 year (ranked 96th of 318 ETFs we track).
The management fee of 0.08% is very low — typical of low-cost index funds. That's cheaper than the typical 0.35% for similar ETFs. If cost is your priority, VTS (0.03%) and IJH (0.07%) cover similar ground for less. It pays a low 1.49% yield, so most of its return must come from capital growth.
Over the past 10 years its volatility has been elevated (annualised standard deviation around 17.82%), meaning noticeably larger swings than the broad market. Its 10-year Sharpe ratio of 0.53 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is low at about 15% a year — it trades only a small slice of its holdings each year, so trading costs and tax on realised gains stay modest — typical of a passive index strategy.
Strengths
- Low-cost: a 0.08% management fee keeps more of the return in your pocket.
Things to watch
- Cheaper alternatives exist: VTS and IJH.
Good to know
- Low 1.49% yield — this is a growth-oriented fund, not an income play.
What IJR's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
US-listed companies — the world's deepest, most innovation-heavy market and home to the mega-cap tech names. Has led global returns for over a decade.
- Market regime
- Strong leadership has left valuations high and the index heavily concentrated in a handful of tech giants. Unhedged funds also rise and fall with the AUD/USD exchange rate.
- In a portfolio
- A legitimate core holding for global exposure, but be aware you are buying after a long run of outperformance and at elevated valuations.
Smaller companies, which historically carry a long-run 'size premium' alongside greater volatility and lower liquidity.
- Market regime
- Tends to lead early in economic recoveries and falls hardest in recessions and credit crunches, as smaller firms are more economically sensitive.
- In a portfolio
- A long-horizon satellite tilt for extra growth — expect a bumpier ride than large-cap and broad-market funds.
Holdings are weighted by company size, so the largest companies carry the most weight. These funds are cheap, tax-efficient and self-rebalancing.
- Market regime
- Works in almost any regime as a low-maintenance core. The trade-off is concentration — you automatically own more of whatever has already become expensive at the top of a bull market.
- In a portfolio
- The classic buy-and-hold core of most portfolios. Well suited to long-term, hands-off investing.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.