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[Logo]( Proprietary Data Insights Financial Pros’ Top Small Cap ETF Searches in the Last Month Rank Ticker Name Searches
#1 [IWM]( iShares Russell 2000 ETF 35
#2 [SDVY]( First Trust SMID Cap Rising Dividend Achievers ETF 14
#3 [TNA]( Direxion Daily Small Cap Bull 3X Shares 4
#4 [AVDV]( Avantis International Small Cap Value ETF 3
#5 [SMMD]( iShares Russell 2500 ETF 3
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- 12-month trailing yield: 1.32%
- Inception: May 22, 2000
- Expense ratio: 0.19%
- Number of holdings: 1926 Tracking the 2000 stocks that comprise the Russell 2000 index, the IWM holds a few less than that at any given time (currently 1926). These companies are the smallest of the Russell 3000 index, which includes 98% of the investable stocks in the U.S. It selects the companies based on market capitalization. Unlike the SPY, the IWM is an equal weighted index, meaning no stock should make up more than 0.5% of the index. [Tickers] [Source: iShares]( Super Micro Computers' meteoric rise will eventually cause it to be eliminated from the ETF holdings because it has grown so big. While the larger indexes are dominated by technology, the IWM is more evenly distributed, with financials and industrials making up a much larger percentage of the holdings. [Sectos] [Source: iShares]( Performance Small caps have lagged behind the broader indexes, which have been driven by large technology companies. You can see below how returns are negative looking back over 3 years. [Returns] [Source: iShares]( Competition With the IWM as the most popular and liquid small-cap index, we wanted to offer some alternatives in the same area. - First Trust SMID Cap Rising Dividend Achievers ETF (SDVY): SDVY focuses on small and mid-cap companies with a history of rising dividends and is market cap weighted.
- Direxion Daily Small Cap Bull 3X Shares (TNA): This ETF aims to provide 300% of the daily performance of the Russell 2000 Index, making it a leveraged, market cap weighted fund.
- Avantis International Small Cap Value ETF (AVDV): AVDV targets international small-cap value stocks, using a market cap weighted approach with a tilt towards value factors, distinguishing itself by focusing on lower-priced small-cap stocks outside the U.S.
- iShares Russell 2500 ETF (SMMD): SMMD tracks the Russell 2500 Index, which includes both small and mid-cap U.S. stocks, using a market cap weighted methodology. [Net assets] What’s interesting in this group is the dividend achievers outperformed the rest, which isn’t what we typically see. [LOCK IN Annual Income Returns as High as 11.1% for Life]( If investors and retirees are worried about running out of money in retirement... they should be! Yet there is a simple but little-understood solution to this looming retirement crisis. It’s an advanced income strategy popular with the super-wealthy – a strategy that bypasses the stock market entirely and everything else associated with investing. It’s a way for retirement-age couples and individuals to LOCK IN monthly payments with a guaranteed payout yield of up to 11.1% annually for life. And here’s the best part: these payments are NOT affected by anything going on in the stock market or in other financial markets. [Click here to find out more.]([Ad] Our Opinion 8/10 As far as small cap ETFs go, the IWM is the best. It’s liquid with plenty of options. However, we’re not a big fan of the small cap index itself. Large companies that grow in size eventually exit the index, leaving you with the lowest performers. That said, investing in small caps individual is difficult. So, for the average investor, the IWM is an excellent choice for their portfolio. [-facebook-share]( [-twitter-share]( [-linkedin-share]( [-email-share](mailto:?body= https%3A%2F%2Finvestingchannel.com%2F%3Fp%3D619696?utm_medium=ic-nl&utm_source=119946 ) News & Insights Just Spilled - [Is Virgin Galactic (SPCE) Headed For Bankruptcy?](
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