VBR - IJS: Not The Best Option In This Space But Still Offers Some Promise
2024-05-10 05:18:50 ET
Summary
- iShares S&P Small-Cap 600 Value ETF focuses on undervalued US small-cap stocks using three key sub-metrics - earnings yield, book value to price, and sales yield.
- We highlight how IJS compares poorly relative to the largest offering in this space - VBR.
- Despite its inferiority to VBR, we highlight a few reasons why IJS could still be pursued.
Introduction
The iShares S&P Small-Cap 600 Value ETF ( IJS ), a stalwart that has been around since the turn of the millennium, offers coverage to US small-cap stocks that are believed to be undervalued. To expand on this, IJS's tracking index focuses on the stocks from the S&P Small-Cap 600 Index that exhibit the strongest value traits. To ascertain this, the ETF seeks to allot composite value scores to stocks from the underlying universe, based on three key sub-metrics; a) the earnings yield, b) book value to price, and c) sales yield....
IJS: Not The Best Option In This Space, But Still Offers Some Promise