Small Cap and Microcap ETFs

July 01, 2007 at 1:00 pm by Tom Lydon

0304060628041716_tn Each index provider has a different definition for small cap and micro cap stocks within exchange traded funds (ETFs). For example, the S&P defines small cap as companies with a market cap of $300 million to $1.5 billion, but the Dow Jones looks at the largest 5,000 stocks and numbers 751 through 2,500 are put in the Wilshire Small-Cap Index and numbers 2,501 through 5,000 are placed in the Wilshire Micro-Cap Index.

With small cap and micro cap ETFs defined, Seeking Alpha offers investing suggestions on how to use them:

  • Ways to diversify your portfolio
  • When to use micro cap ETFs
  • Tips on shorting micro cap ETFs
  • Which ETFs are best for hedging
  • When to exercise caution

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1 Comments For This Post

  1. Moneymonk Says:

    I have VB, hopefully it will do well

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