Analysis

Key stats

About iShares U.S. Small?Cap Equity Factor ETF

SMLF offers a multi-factor take on the US small-cap equity space. Eligible securities are given a composite score according to four style factors: quality, value, momentum, and low volatility. Quality is measured by the companys fundamentals, as well as carbon emissions intensity and greenhouse gas reduction targets. Value is scored based on book-to-price, dividend yield, earnings yield, and cash flow yield. Momentum is based on both price and earnings momentum, while low volatility refers to the standard deviation of returns over the past 12 months. The index utilizes an optimization process to select and weight securities for enhanced exposure to the four factors, while retaining sector diversification. The fund may invest up to 20% of its assets in futures, options, and swaps in managing the portfolio. Prior to March 1, 2023, the fund was called iShares MSCI USA Small-Cap Multifactor ETF and tracked the MSCI USA Small Cap Diversified Multiple-Factor Index.