Comprehensive List of U.S. Small Cap ETF Selections
Investing in smaller companies offers a unique opportunity for growth that is often absent in larger market segments. There are many U.S. small-company funds available, so we have separated these offerings into five distinct categories. This organization helps our visitors navigate the diverse landscape of micro-cap and small-equity trackers.
The funds on this list utilize various strategies, such as fundamental analysis or dividend-focused selection. Some of these small cap etf products include over 1,500 holdings to provide maximum diversification. You can also explore additional specialized categories through the links below:
- List of Russell 2000 ETFs
- List of S&P 600 ETFs
- List of Small-Cap Growth ETFs
- List of Small-Cap Value ETFs
Understanding Fund Costs and Tax Efficiency
When selecting a fund, it is vital to review the expense ratio to understand how management fees impact your returns. High charges and expenses can significantly erode your gains over a long-term horizon. Investors should also consider how capital gains tax rates might affect their net investment results.
Low-turnover index funds generally offer better tax efficiency compared to actively managed portfolios. Always compare the total cost of ownership across different providers before committing capital. Minimizing these costs is one of the few variables an investor can control directly.
Strategic Considerations and Risk
Small-cap stocks typically represent companies with a market capitalization between $300 million and $2 billion. While these firms can offer explosive growth, they also carry a higher objectives risk due to increased volatility. It is important to remember that past performance is never a guarantee of future results.
Diversification within the small-cap space can help mitigate some of the risks associated with individual company failure. Many investors use these index trackers to complement their large-cap holdings. Please review the prospectus carefully before investing to ensure the strategy aligns with your goals.
List of Broad U.S. Small-Cap Funds
AdvisorShares Cornerstone Small Cap ETF (SCAP)
AlphaMark Actively Managed Small Cap ETF (SMCP)
Compass EMP US Discovery 500 Enhanced Volatility Weighted Fund (CSF) (Balanced between securities and cash depending on market volatility)
ETFS Zacks Earnings Small-Cap U.S. Index ETF (ZSML) (Earnings used as one factor in company selection)
First Trust Small Cap Core AlphaDEX Fund (FYX) (Fundamentals used in company selection process)
iShares Edge MSCI Min Vol USA Small-Cap ETF (SMMV)
iShares Morningstar Small-Cap ETF (JKJ)
iShares Edge MSCI Multifactor USA Small-Cap ETF (SMLF)
Principal U.S. Small Cap Index ETF (PSC)
Schwab Fundamental U.S. Small Company Index (FNDA) (Fundamentals used in company selection process)
Schwab U.S. Small Cap ETF (SCHA) (Large number of small-cap stocks included)
Vanguard Smallcap ETF (VB) (Large number of small-cap stocks included)
WisdomTree SmallCap Earnings ETF (EES) (Recent earnings used in selection of companies)
Small-Cap Dividend Funds
ETRACS Monthly Pay 2xLeveraged U.S. Small Cap High Dividend ETN (SMHD) (Leveraged)
Victory CEMP US Small Cap High Div Volatility Wtd Index ETF (CSB)
WisdomTree U.S. SmallCap Dividend Growth ETF (DGRS)
Small-Cap Momentum Funds
PowerShares DWA SmallCap Momentum Portfolio (DWAQ)
Small-Cap Sector Selections
IQ US Real Estate Small Cap ETF (ROOF)
PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY)
PowerShares S&P SmallCap Consumer Discretionary Portfolio (PSCD)
PowerShares S&P SmallCap Consumer Staples Portfolio (PSCC)
PowerShares S&P SmallCap Energy Portfolio (PSCE)
PowerShares S&P SmallCap Financials Portfolio (PSCF)
PowerShares S&P SmallCap Health Care Portfolio (PSCH)
PowerShares S&P SmallCap Industrials Portfolio (PSCI)
PowerShares S&P SmallCap Information Technology Portfolio (PSCT)
PowerShares S&P SmallCap Utilities Portfolio (PSCU)
PowerShares S&P SmallCap Materials Portfolio (PSCM)
The information provided on this page is for educational purposes only and does not constitute financial advice. Investing in a small cap etf involves market risk and potential loss of principal. Research each fund’s historical volatility and underlying index methodology to determine if it fits your specific risk tolerance.