iShares U.S. Small‑Cap Equity Factor ETF

iShares U.S. Small-Cap Equity Factor ETF (SMLF) tracks the STOXX U.S. Small-Cap Equity Factor Index. The index is a rules-based mix of smaller U.S. companies tilted toward four traits: momentum, quality, value and low volatility. It charges 0.15% a year, more than Vanguard Small Cap ETF (VB) at 0.05%. Its holdings are spread widely: the 10 largest made up just 7.31% of assets as of July 31, 2026.

• Over the year to Oct 27, 2026, SMLF returned +13.7%, 9th of 9 among similar funds.
• Its 5-year annualized return was +10.6% and its 10-year +11.9%.
• In the 2020 COVID crash it fell 40.9% and regained its old high 8 months after the low.
• Its worst full calendar year was 2022 (-12.2%); its best was 2021 (+26.5%).
• The deepest fall in its price history was 41.9% (Jan 16, 2020 to Mar 18, 2020), recovered by Nov 24, 2020.

As of Jul 31, 2026, the fund held 893 securities; the ten largest made up 7.31% of assets. It also reported 6.88% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jul 31, 2026, investors added a net $295.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +4.16%, +4.22%, -3.28%.

The fund starts from the STOXX US Small Cap Index. That index covers roughly the bottom 15% of the U.S. stock market by value, and bigger companies get bigger weights. The index provider, STOXX, scores each stock on four "factors," which are traits linked to returns over long periods. Momentum looks at price and earnings trends. Quality looks at profitability, share dilution and accounting measures, plus carbon emissions intensity and greenhouse gas reduction targets. Value uses book-to-price and dividend, earnings and cash flow yields. Low volatility looks at price swings over the past 12 months.

A computer optimizer then picks and weights stocks to get as much of these traits as possible. It also keeps industry and sector mix, trading and overall risk close to the parent index. No stock can exceed 10%, and stocks above 4.5% must total less than 22.5%. The index is rebalanced every quarter and had about 842 stocks as of July 31, 2025.

BlackRock Fund Advisors uses "representative sampling," so the fund may not hold every index stock. It keeps at least 80% of assets in index stocks and may put up to 20% in futures, options, swaps or cash. It may also lend out up to one-third of its assets. The fund does not try to beat the index or move to cash when markets fall.

• SMLF charges 0.15% a year, versus an average of 0.13% for the similar funds below (5th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $15 in the first year and $192 over 10 years (assuming a 5% annual return).

It adds a factor-tilted slice of small U.S. companies, which have historically swung more than the broad market, so it fits best as a smaller holding beside a core fund.

SMLF could add smaller U.S. companies to a portfolio built mainly on large-cap stocks. It launched in April 2015, so it has no record for the 2008 crisis. In the 2020 COVID crash it fell about 41% between February 19 and March 18, 2020, then took about eight months to recover. In the 2022 bear market it dropped about 23% and took about 15 months to get back to its peak, in December 2023. Its worst calendar year was 2022, at −12.01%. Anyone forced to sell during stretches like these would lock in losses. Income is modest: a 1% trailing yield as of October 27, 2026, paid quarterly. Under the SEC's standard example, $10,000 would cost about $192 in fees over 10 years. Past results don't predict the future, and a plan should weigh the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.