ETF Evaluator: iShares U.S. Small-Cap Eq Fac ETF (SMLF) Follow This ETF

iShares U.S. Small-Cap Eq Fac ETF Overview

iShares U.S. Small-Cap Eq Fac ETF (SMLF) is a passively managed U.S. Equity Small Blend exchange-traded fund (ETF). iShares launched the ETF in 2015.

The investment seeks to track the STOXX US Small‑Cap Equity Factor Index. The index is composed of small-capitalization equity securities from the STOXX U.S. Small Cap Index that are selected and weighted using an optimization process designed to maximize exposure to four target factors: momentum, quality, value, and low volatility. The fund will invest at least 80% of its assets in the component securities of its index and in investments that have economic characteristics that are substantially identical to the component securities of its index and may invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents.

About iShares U.S. Small-Cap Eq Fac ETF (SMLF)

There are 4 members of the management team with an average tenure of 3.73 years: Jennifer Hsui (2015), Peter Sietsema (2025), Matt Waldron (2025) and Steven White (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: S&P US TMI TR USD index with a weighting of 100% and STOXX U.S. Small-Cap Eq Factor NR USD index with a weighting of 100%. iShares U.S. Small-Cap Eq Fac ETF has 906 securities in its portfolio. The top 10 holdings constitute 8.3% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

iShares U.S. Small-Cap Eq Fac ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. iShares U.S. Small-Cap Eq Fac ETF has 4.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 95.0% There is 4.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). iShares U.S. Small-Cap Eq Fac ETF has 0.2% of the portfolio in cash.

Assets Under Management

The fund has $4 billion in total assets, which is below the $5 billion average for the Small Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

SMLF Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The iShares U.S. Small-Cap Eq Fac ETF expense ratio is low compared to funds in the Small Blend category. iShares U.S. Small-Cap Eq Fac ETF has an expense ratio of 0.15%, which is 65% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. iShares U.S. Small-Cap Eq Fac ETF has a portfolio turnover rate of 24%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 50% for the Small Blend category.

Recently, in the month of June 2026, iShares U.S. Small-Cap Eq Fac ETF returned 4.2%, which earned it a grade of D, as the Small Blend category had an average return of 5.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

iShares U.S. Small-Cap Eq Fac ETF has a trailing yield of 0.99%, which is below the 1.19% category average. The fund normally distributes its income quarterly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

iShares U.S. Small-Cap Eq Fac ETF Grades

Year to date, the ETF has returned 19.7%, 0.9 percentage points worse than the category, which translates into a grade of D. The fund has returned 32.7% over the past year (grade of C), 19.8% over the past three years (grade of A) and 11.6% per year over the past five years (grade of A) and 12.9% per year over the past 10 years (grade of B).

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