Small-cap ETFs are the exchange-traded funds that invest in the stocks of companies with a market capitalization between $250 million and $3 billion. The portfolio is diversified with small-cap companies and stocks belonging to different sectors and separate investment goals like value and growth.
Small-cap ETFs offer a much higher growth potential than their large-cap counterparts as the small-cap companies have a lot of room to grow. They undergo exponential gains compared to the larger companies; however, the risks are also equally elevated.
Ticker | Company Name | Last Price | 1-Year Return |
|---|---|---|---|
| NUSC | Nuveen ESG Small-Cap ETF | $44.79 | 45.61% |
| RZV | Invesco S&P SmallCap 600 Pure Value ETF | $96.40 | 84.50% |
| RZG | Invesco S&P SmallCap 600 Pure Growth ETF | $162.94 | 51.47% |
| JKK | iShares Morningstar Small-Cap Growth ETF | #N/A | #N/A |
| DWAS | Invesco DWA SmallCap Momentum ETF | $92.53 | 52.92% |
| CSML | IQ Chaikin U.S. Small Cap ETF | $35.96 | 59.12% |
| JKJ | iShares Morningstar Small-Cap ETF | #N/A | #N/A |
| FYC | First Trust Small Cap Growth AlphaDEX Fund | $74.69 | 55.31% |
| SMLF | iShares Edge MSCI Multifactor U.S.A. Small-Cap ETF | $55.81 | 47.45% |
| VTWV | Vanguard Russell 2000 Value ETF | $145.72 | 62.83% |
| SMLV | SPDR SSGA U.S. Small Cap Low Volatility Index ETF | $116.34 | 52.32% |
| VTWG | Vanguard Russell 2000 Growth ETF | $219.69 | 33.70% |
| RWJ | Invesco S&P SmallCap 600 Revenue ETF | $118.99 | 93.98% |
| SMMV | iShares Edge MSCI Min Vol U.S.A. Small-Cap ETF | $37.75 | 27.49% |
| PSC | Principal U.S. Small-Cap Multi-Factor Index ETF | $46.26 | 63.35% |
| JKL | iShares Morningstar Small Cap Value ETF | #N/A | #N/A |
| VIOG | Vanguard S&P Small-Cap 600 Growth ETF | $229.80 | 48.95% |
| VIOV | Vanguard S&P Small-Cap 600 Value ETF | $177.62 | 62.11% |
| DFJ | WisdomTree Japan SmallCap Dividend Fund | $74.47 | 9.21% |
| DFE | WisdomTree Europe SmallCap Dividend Fund | $75.17 | 49.47% |
| JHSC | John Hancock Multifactor Small Cap ETF | $35.92 | 43.80% |
| EWX | SPDR S&P Emerging Markets Small Cap ETF | $59.58 | 34.70% |
| FYX | First Trust Small Cap Core AlphaDEX Fund | $94.73 | 60.13% |
| TNA | Direxion Daily Small Cap Bull 3x Shares | $91.71 | 183.58% |
| SMDV | ProShares Russell 2000 Dividend Growers ETF | $63.14 | 28.94% |
| EES | WisdomTree U.S. SmallCap Fund | $49.49 | 60.68% |
| GWX | SPDR S&P International Small Cap ETF | $39.32 | 33.33% |
| VIOO | Vanguard S&P Small-Cap 600 ETF | $205.58 | 55.40% |
| SLY | SPDR S&P 600 Small Cap ETF | $96.91 | 55.68% |
| SPSM | SPDR Portfolio Small Cap ETF | $43.81 | 56.52% |
| VTWO | Vanguard Russell 2000 ETF | $91.64 | 48.07% |
| DLS | WisdomTree International SmallCap Dividend Fund | $75.34 | 29.47% |
| DGS | WisdomTree Emerging Markets SmallCap Dividend Fund | $52.63 | 27.22% |
| SLYG | SPDR S&P 600 Small Cap Growth ETF | $90.09 | 50.28% |
| FNDC | Schwab Fundamental International Small Company Index ETF | $39.41 | 35.43% |
| DES | WisdomTree U.S. SmallCap Dividend Fund | $31.89 | 48.26% |
| SLYV | SPDR S&P 600 Small Cap Value ETF | $84.50 | 63.66% |
| XSLV | Invesco S&P SmallCap Low Volatility ETF | $49.21 | 46.07% |
| SCHC | Schwab International Small-Cap Equity ETF | $43.17 | 37.53% |
| FNDA | Schwab Fundamental U.S. Small Company Index ETF | $54.58 | 62.10% |
| IJT | iShares S&P Small-Cap 600 Growth ETF | $134.36 | 50.16% |
| VSS | Vanguard FTSE All-World ex-US Small-Cap ETF | $138.48 | 35.25% |
| IJS | iShares S&P Small-Cap 600 Value ETF | $103.30 | 63.63% |
| SCHA | Schwab U.S. Small-Cap ETF | $103.97 | 48.68% |
| IWO | iShares Russell 2000 Growth ETF | $304.26 | 34.81% |
| VBK | Vanguard Small-Cap Growth ETF | $291.63 | 33.38% |
| IWN | iShares Russell 2000 Value ETF | $166.10 | 62.62% |
| SCZ | iShares MSCI EAFE Small-Cap ETF | $76.45 | 34.62% |
| VBR | Vanguard Small-Cap Value ETF | $176.90 | 56.48% |
| VB | Vanguard Small-Cap ETF | $228.64 | 45.88% |
| IWM | iShares Russell 2000 ETF | $226.83 | 47.96% |
| IJR | iShares Core S&P Small Cap ETF | $112.68 | 56.85% |
Factors to Consider Before Investing in Small-Cap ETFs
Small-cap ETFs do offer higher flexibility and diversification. However, due to high volatility, they are also subject to elevated risks. The performance of small-cap companies and, thus, the small-cap ETFs swings largely from year to year and may not be suitable for risk-averse investors.
Therefore, before investing in small-cap ETFs, investors must be considerate of the volatility and risk of the portfolio. They must remain aware of the liquidity associated with the ETFs, in addition to the expense ratios. The most suitable small-cap ETFs should have low expense ratios, high liquidity, and a lot of diversification.
Which Small-Cap ETFs Should I Buy?
Among the wide variety of small-cap ETFs, we have aggregated a list of the top small-cap ETFs for you to choose from. It is important to consider that for profitable investments, the assets under management should be greater than $150 million, and the ETF must have had positive returns in the past couple of years.
Additionally, investors should also consider the expense ratio of the small-cap ETFs they decide to invest in, in addition to the sector and investment goal they would be willing to get exposed to. The best small-cap ETFs vary for investors investing in international companies, domestic companies, different sectors, and for those looking for value or growth.
