What Is IJR? iShares Core S&P Small-Cap ETF

IJR is the iShares Core S&P Small-Cap ETF, run by BlackRock. It tracks the S&P SmallCap 600 index, holding roughly 600 small US companies weighted by market capitalization. It launched in May 2000 and charges a very low 0.06%, placing it among the cheapest small-cap funds available.

The detail that makes IJR distinctive is the index it tracks. The S&P SmallCap 600 requires companies to have positive earnings before they can be added, so IJR effectively screens out unprofitable small-caps. That quality filter is a quiet but meaningful difference from Russell 2000 funds.

Approximate weights as of mid-2026; refresh quarterly from BlackRock iShares's fund page. Each ticker links to its individual stock guide in Walnut.

IJR holds roughly 600 profitable small US companies, spread across industrials, financials, information technology, healthcare, and consumer sectors. It is deeply diversified: even its largest positions, recently names like Semtech, Sanmina, Viavi Solutions, and FormFactor, sit well below 1% of the fund.

Because the S&P 600 requires positive earnings, the roster skews toward established, cash-generating small firms rather than early-stage or speculative ones. That gives IJR a subtly higher-quality profile than a broad, unscreened small-cap index without any active management.

IWM, the iShares Russell 2000 ETF, is the most-traded small-cap fund and the go-to for options and short-term traders. But the Russell 2000 includes unprofitable companies, whereas IJR's S&P 600 requires positive earnings. For long-term holders, that quality screen has historically given IJR an edge.

VB, the Vanguard Small-Cap ETF, tracks a broader index that reaches into mid-caps, so its holdings skew larger than IJR's. IJR is the more purely small-cap and quality-screened choice; VB is cheaper still and blends small with mid. The pick depends on whether you want the earnings filter, maximum liquidity, or a small-mid blend.

Over its long history IJR has often outpaced Russell 2000 trackers, a gap researchers largely attribute to its profitability screen weeding out weak companies. Its returns can diverge sharply from large-cap indexes, leading in risk-on small-cap rallies and lagging when investors crowd into mega-caps.

The outlook for IJR is the outlook for US small-caps, an asset class that is more cyclical and volatile than large-caps but has historically rewarded patient investors. The earnings screen does not remove that volatility; it simply tilts the roster toward firms that are already profitable.

IJR suits investors who want a low-cost, quality-tilted small-cap allocation to complement a large-cap core. Its 0.06% fee and built-in earnings screen make it an efficient way to add the small-cap slice of a diversified portfolio without paying for active management.

Whether IJR belongs in your portfolio depends on your goals, time horizon, and tolerance for small-cap volatility. Walnut is not an investment adviser, and nothing here is a recommendation to buy or sell IJR. It is a description of what the fund is and how it compares to IWM and VB.

IJR trades on major brokerages including Robinhood, Fidelity, Schwab, and Public. Many support fractional shares, so you can buy a partial share to start. It trades throughout the day like any stock, with deep liquidity from its very large asset base.

To track IJR alongside a broader strategy, you can connect your brokerage to Walnut and hold it inside a thematic basket. Walnut leaves the trading at your own broker and acts as the tracking and intelligence layer on top.

The bottom line on IJR: it is a cheap, broad way to own profitable US small-caps, since the S&P 600 index it tracks requires positive earnings to join. At 0.06% it works as a core small-cap holding. IWM is more liquid but includes unprofitable firms; VB leans larger. IJR's edge is the quality screen at a low cost.

Whether IJR is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is IJR a buy?

IJR yields ~1.2% as of mid-2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see IJR dividend: yield and schedule.