IJR ETF

IJR provides a way to diversify and have limited exposure to small-cap stocks, with a low expense ratio of just 0.06%. Small-cap stocks often have the potential for quicker growth and are sometimes undervalued. Additionally, mixed economic data supports the idea of investing in equities through this type of fund.

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 05/22/2000.

With the Federal Open Market Committee (FOMC) cutting interest rates by a larger-than-expected 50 basis points in its September meeting, businesses throughout the country will be able to take out loans more cheaply. One intended goal of a rate cut like this is to foster increased profitability through business expansion.

2 ETFs that offer big time growth potential

Large-Cap stocks have powered ahead to the point where small-caps now offer a higher dividend yield. The small-cap space is most commonly associated with the iShares Russell 2000 ETF. Declining borrowing rates should benefit small companies to an outsized degree, especially given their reliance on bank debt.

Launched on 05/22/2000, the iShares Core S&P Small-Cap ETF (IJR) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Blend segment of the US equity market.

In recent weeks, investors started pouring significant money into small-cap stocks. The move came after years during which the Street shunned the names because it believed they were not attractive in an era of high interest rates.

As the three major bourses are hovering near record highs, investors are rotating to areas like utility and the small-caps, which are cheap and undervalued.

Small-cap stocks have regained popularity with a strong rally in May, outperforming large-cap stocks as investors seek out undervalued segments of the market.