iShares Core S&P Small-Cap ETF

IJR

Market cap $104B

The Russell 2000 is beating the S&P 500 this year, but that outperformance is masking a disturbing trend of falling earnings estimates

The eye-catching performance of some of the world's largest stocks has led to them becoming fixtures in investors' portfolios. Whether that exposure comes via market-cap-weighted funds or direct ownership, the stocks' collective gains have overshadowed the roughly 2,500 other U.S.-listed stocks that do not meet the criteria for inclusion in the S&P 500.

Small-cap stocks are beginning to outperform again, but ETF investors remain overwhelmingly focused on mega-cap technology and AI trades — a disconnect some strategists believe could create an opportunity in overlooked parts of the market.

We see a few factors to diminish iShares Core S&P Small-Cap ETF's (IJR) alpha potential relative to the SPDR S&P 500 ETF Trust (SPY). IJR's valuation gap relative to SPY has largely disappeared in the past few months due to price changes and EPS updates. The updated rate outlook also points to far higher odds of rate hikes in the near future.

There has been a visible disparity between the performance of U.S. small-caps and U.S. large-caps so far this year. What hasn't been too visible is a lot of investor interest in the action.

If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the iShares Core S&P Small-Cap ETF (IJR), a passively managed exchange traded fund launched on May 22, 2000.

Launched on 11/08/2017, the John Hancock Multifactor Small Cap ETF (JHSC) is a smart beta exchange traded fund offering broad exposure to the Style Box - Small Cap Blend category of the market.

For years, owning small-cap stocks felt like watching a neighbor's party through a window.

Small caps are having a better 2026 than most investors expected.

The S&P 500 is down on the year through late March, but surprisingly, small caps are not.