New Trade for October 15th, 2020

Futures are falling this morning, pointing to a third straight day of losses for all three major indices.  Fading stimulus hopes are contributing to downward movement as well as rising COVID-19 cases in 37 U.S. states.  Industrials, energy and materials were the only sectors to close green yesterday. 

Some large cap stocks may have hit their ceiling after an astronomical recovery from March lows.  It’s understandable that many investors are shifting their focus to small cap stocks which haven’t fared as well in their recovery and therefore have plenty of room for gains in the second half of 2020.  

Because of their size, small-cap stocks have strong, albeit volatile, growth potential.  If you’re interested in adding small-cap stocks to your portfolio as 2020 draws to a close, consider an ETF, which can reduce the volatility associated with individual stocks while adding an important layer of diversification to your portfolio. iShares Core S&P Small-Cap ETF (IJR) is one of the most comprehensive ways to invest in small-caps through an ETF.  

iShares Core S&P Small-Cap ETF (IJR)

The largest small-cap focused fund on Wall Street with over $40 billion in assets under management.  IJR has a low expense ratio of just 0.06% and a deep bench of about 600 small-cap components. 

  • Net Assets 40.18B
  • NAV 67.17
  • Yield 1.73%
  • YTD Daily Total Return -19.25%
  • Beta (5Y Monthly) 1.28
  • Expense Ratio (net) 0.06%
  • Inception Date 2000-05-22
  • Current Top Holdings: Exponent Inc. (EXPO), Neogen Corp (NEOG), Wingstop Inc.