(SMMD) iShares Russell 2500 - Ratings and Ratios

The iShares Russell 2500 ETF (SMMD) is designed to track the performance of small- to mid-capitalization U.S. equities, offering exposure to a segment of the market that often represents growth potential. The fund allocates at least 80% of its assets to the component securities of the FTSE Russell 2500 Index, ensuring alignment with its underlying index. The remaining 20% may be invested in derivatives like futures, options, and swap contracts, along with cash and cash equivalents, allowing for flexibility in managing the portfolio.

The FTSE Russell 2500 Index serves as the funds benchmark, comprising 2,500 companies that fall within the small- to mid-cap range. This index is widely regarded for its representation of the broader U.S. equity market, excluding the largest 1,000 companies by market capitalization. By targeting this specific segment, the ETF provides diversification across various industries and sectors, reducing reliance on any single area of the market.

With an expense ratio of 0.15%, SMMD is positioned as a cost-effective option for investors seeking small to mid-cap exposure. Its structure allows for efficient tracking of the underlying index, making it suitable for both short-term trading and long-term investment strategies. The ETFs listing on the BATS exchange ensures competitive pricing and liquidity, catering to a range of investor needs.