(IJR) iShares Core S&P Small-Cap - Ratings and Ratios

The iShares Core S&P Small-Cap ETF (NYSE ARCA:IJR) tracks the performance of the S&P SmallCap 600 Index, which is a market-capitalization-weighted index representing small-cap companies in the U.S. equity market. The fund is designed to provide exposure to small-cap stocks, which are typically defined as companies with market capitalizations between $450 million and $2.5 billion. The ETF holds a diversified portfolio of small-cap stocks across various sectors, reflecting the composition of the underlying index.

The funds investment strategy involves holding at least 80% of its assets in securities that are part of the S&P SmallCap 600 Index or in investments that have similar economic characteristics, such as derivatives that replicate the performance of the index. The remaining 20% of the portfolio may be allocated to futures, options, swap contracts, cash, and cash equivalents to manage risk or enhance returns. This approach allows the fund to closely track the index while maintaining liquidity and flexibility in its investment strategy.

From a technical standpoint, the ETF is currently trading below its key moving averages, with the 20-day SMA at 100.17, the 50-day SMA at 106.50, and the 200-day SMA at 112.93. The last price of $96.30 reflects a downtrend in recent months. The Average True Range (ATR) of 3.35 indicates moderate volatility, suggesting potential price swings in the near term. The funds average 20-day volume of 5,361,100 shares highlights its liquidity, making it a popular choice among investors seeking small-cap exposure.

Over the next three months, the ETFs performance is likely to be influenced by broader market trends, economic data, and sector-specific developments. Based on the current technical setup, the price may test the $93.95 level (last price minus ATR) if the downtrend continues. However, if the price breaks above the 20-day SMA of $100.17, it could signal a potential reversal, with the 50-day SMA at $106.50 acting as the next resistance level. The funds long-term fundamentals remain intact, supported by its diversified exposure to small-cap companies and its position as a leading ETF in its category.