Understanding the Risks and Disadvantages of the iShares Core S&P Small-Cap ETF

The iShares Core S&P Small-Cap ETF (IJR) has delivered a 907% total return since inception, outperforming the iShares Core S&P 500 ETF (IVV). However, the ETF also carries risks and disadvantages, including high volatility and questionable quality of its holdings. IJR tracks the S&P SmallCap 600 Index and has a representative sampling indexing strategy, which provides more flexibility than a full-replication strategy. With an expense ratio of 6 bps, IJR is one of the cheapest ETFs in its subclass.