ETF Flows: IJR Experiences $251.7 Million Outflow

The iShares Core S&P Small-Cap ETF (IJR) experienced a $251.7 million outflow, a 0.3% decrease in shares outstanding. The ETF's holdings include Mr Cooper Group Inc (COOP), Brinker International (EAT), and Qorvo Inc (QRVO). IJR's price has decreased from $128.61 to $109.41, with a low point of $89.22 and a high point of $128.61.

The iShares Core S&P Small-Cap ETF (IJR) experienced a notable outflow of $251.7 million, resulting in a 0.3% decrease in shares outstanding. This shift, which occurred over the past month, has been accompanied by a significant decline in the ETF's price, dropping from $128.61 to $109.41, with a low point of $89.22 and a high point of $128.61 [3].

The ETF's holdings, which include Mr. Cooper Group Inc (COOP), Brinker International (EAT), and Qorvo Inc (QRVO), have been impacted by broader market conditions. Brinker International, one of the ETF's key holdings, has recently seen an upgrade in its price target by Stifel analyst Chris O’Cull, who cited robust traffic performance and market share gains as the key drivers [1].

Despite the recent positive outlook on Brinker International, the broader market volatility and geopolitical tensions have contributed to the overall decline in the ETF's value. The ETF's holdings are also sensitive to economic cycles, with sectors such as industrials and consumer cyclicals facing headwinds [2].

Investors should monitor the ETF's performance closely, as the recent dividend cut by the Schwab Fundamental International Small Equity ETF (FNDC) highlights the potential for reduced payouts and heightened volatility in international small-caps [2]. The ETF's P/E ratio, currently at 15.2x, is near its 5-year average, suggesting no extreme overvaluation, but investors should be aware of the increased risk associated with small-cap international exposure.

In conclusion, the iShares Core S&P Small-Cap ETF (IJR) has seen significant outflows and price declines due to market volatility and broader economic conditions. While the ETF's holdings, such as Brinker International, may offer growth potential, investors should proceed with caution and consider the increased risk associated with small-cap international exposure. It is crucial to stay informed and diversify further with higher-yielding peers or U.S.-centric ETFs to balance risk.

References:
[1] https://finance.yahoo.com/news/stifel-raises-pt-brinker-international-192419070.html
[2] https://www.ainvest.com/news/fndc-dividend-cut-signal-trouble-strategic-shift-2506/
[3] https://coinpedia.org/news/ripple-sec-lawsuit-ends-xrp-etf-incoming-price-set-to-break-3-soon/