Going International With Small-Cap ETFs

January 21st at 12:00pm by Tom Lydon

We noted in our 2011 exchange traded fund (ETF) predictions that small-caps were on track to be hot this year. But that’s not only in the United States.

It’s not unreasonable to bet that if U.S. small-caps are doing well, then their international counterparts will fare equally as well, says The ETF Professor for The International Business Times. [Why Small Cap ETFs Are the Ones to Watch.]

The average company in the Russell 2000 notched a 165% gain in income last year, the most since 2003. That kind of performance is fantastic, of course, but in that index you’re only getting the domestic players. [Small Cap ETFs: Small In a Big Way.]

Including international small-cap businesses is easier than ever – a slew of ETFs have come to market in the last several years to give exposure to these small companies. If you want truer exposure to the domestic economy of a given country, consider a small-cap, which are more driven by internal demand than funds that own large-caps.

These are just a few of the many options – to see them all, hop on over to the ETF Analyzer:

  • IQ Canada Small Cap (NYSEArca: CNDA)
  • IQ Australia Small Cap (NYSEArca: KROO)
  • IQ South Korea Small Cap (NYSEArca: SKOR)
  • EGShares India Small-Cap (NYSEArca: SCIN)
  • Guggenheim China Small-Cap (NYSEArca: HAO)
  • Market Vectors Brazil SmallCap (NYSEArca: BRF)
  • SPDR Russell/Nomura Small Cap Japan (NYSEArca: JSC)
  • WisdomTree Emerging Markets SmallCap Dividend ETF(NYSEArca: DGS)

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.