(SMLF) MSCI USA Small-Cap - Overview

The iShares MSCI USA Small-Cap Multifactor ETF (SMLF) tracks a subset of the STOXX US Small-Cap Index, selecting stocks through an optimization model that seeks to maximize exposure to four systematic factors-momentum, quality, value, and low-volatility-while remaining within the small-cap universe. By definition, the fund must hold at least 80 % of its assets in index constituents or securities that are “substantially identical,” and it may allocate up to the remaining 20 % to derivatives (futures, options, swaps) and cash equivalents for tactical adjustments.

Key quantitative points (as of the most recent public filing, assumed to be Q4 2025) include an expense ratio of roughly 0.30 % and assets under management of about $550 million, placing SMLF in the mid-range of U.S. small-cap factor ETFs. The fund’s factor tilts typically translate into a higher weighting in industrials and consumer-discretionary stocks-sectors that have historically driven small-cap performance when domestic consumption is robust. Macro-level drivers such as the Federal Reserve’s policy stance and the U.S. employment outlook are especially material; a tightening cycle tends to compress low-volatility premiums, while a resilient labor market supports the momentum and quality components.

If you want a granular, factor-level performance snapshot and scenario analysis, a quick look at SMLF’s profile on ValueRay can help you assess whether its risk-return profile aligns with your investment thesis.