Going International With Small-Cap ETFs

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.

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