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There are plenty of broader market U.S. exchange traded funds with “small-cap” in their names, but different small-cap ETFs track different indices. That can mean, you guessed it, differing returns for different investors. The Russell 2000 is the gold standard of small-cap indices and serves as the underlying index for the iShares Russell 2000 ETF […]

There has been ample chatter in recent weeks regarding weakness in small-cap stocks and exchange traded funds. No, the chart for the iShares Russell 2000 ETF (NYSEArca: IWM) is not a thing of beauty. The largest small-cap ETF entered trading Thursday more than 5% below its 50-day moving average and 1.6% below its 200-day line. […]

You don’t need to meticulously pick and choose hundreds of stocks and securities to make up a portfolio. Instead, investors can use five low-cost exchange traded funds to create a diversified, long-term investment portfolio. Harry Markowitz, the Nobel Prize-winning father of modern portfolio theory, argues that all investors should choose a similar diversified risky portfolio […]

It was a decent week for U.S. stocks with the S&P 500 rising 0.2%, but small-cap exchange traded funds did not get the memo. For the week ending November 1, the iShares Russell 2000 ETF (NYSEArca: IWM) lost 2.1% and more than $1 billion was pulled from the fund. The Vanguard Small-Cap ETF (NYSEArca: VB) […]

Diversified ETFs are a great way to buy the total U.S. stock market. However, mid-cap and small-cap ETFs provide a way to focus on particular market segments . “Mid caps are considered too big and safe for those seeking volatile small cap exposures, while they are often considered too risky and uncertain for those who […]

As we look forward to better economic growth, investors are regaining their risk appetite. Consequently, small- and micro-capitalization stocks and exchange traded funds are gaining momentum. Small and microcap stocks, which have market capitalizations of about $50 million to $300 million, are the most volatile market segment and generate a larger portion of their revenues […]

Despite a resolution to the fiscal cliff, the consequences of the budget deal will still negatively affect the markets and exchange traded funds. One iShares analyst points out some potential pitfalls and opportunities in the months ahead. “The fiscal drag left in place by the deal, coupled with the lingering uncertainty surrounding the debt ceiling, […]

Exchange traded funds are a convenient way to get exposure to small-cap stocks while mitigating single-company risk. Small-cap ETFs typically focus on the bottom 10% of the market and can offer diversification benefits. “Small-cap stocks tend to be more volatile because of narrower economic moats, greater sensitivity to macroeconomic risks, and less exposure to faster-growing […]

Traditional open-end mutual funds do not have the best track record when it comes to market-capitalization oriented options, with the majority of active managers underperforming indices. However, exchange traded funds passively track underlying benchmarks and provide a straight forward investment strategy. An industry report from late 2011 calculated that about two-thirds of large-cap mutual funds […]

Despite a choppy month on Eurozone debt concerns, both stock and bond exchange traded funds saw positive flows in June. While ETF investors moved back into the equities market, fixed-income assets still remained a hot draw. By the end of June, assets in U.S.-listed ETFs and exchange traded notes stood at $1.18 trillion, or 4% […]

Several Vanguard exchange traded funds were among the fund flows leaders late last week in terms of net creation activity, and it seems clear to us that a significant equity model change occurred on an institutional level, or perhaps “swaps” from like or competing ETFs. Vanguard Small Cap (NYSEArca: VB), $966 million in inflows, Vanguard […]

Small-cap exchange traded funds are now trailing the S&P 500 after falling harder than the blue-chip index in the recent sell-off. The small-cap iShares Russell 2000 (NYSEArca: IWM) was up 6.6% year to date as of Tuesday’s close, compared with a gain of 8.7% for the S&P 500, according to Morningstar. Other small-cap ETFs include […]

With the advent of exchange traded funds, investors are now capable of including a wide range of investment styles and strategies to form their very own diversified ETF portfolio. Depending on the investment objective and time horizon, investors may weight play around with the traditional 60/40 stock-to-bonds split. But with ETFs, investors have the chance […]

In keeping pace with the two ETF pieces that we penned on Tuesday and Wednesday earlier this week, where we concluded that dividend weighted approaches in both the U.S. large and mid-cap equity core equity space delivered superior returns to other approaches in 2011, today we examine the small cap category. Most investment managers and […]

The exchange traded fund industry has over 1,300 products with over $1 trillion in assets. It is no wonder that the average long-term investor may have a hard time picking out which ETFs would suit his or her investment portfolio, but more services are popping up to make the task easier. U.S. News recently provided […]

For retirees who are looking for greater capital appreciation and hold a higher risk tolerance, an ETF portfolio with a more aggressive investment strategy may be a better fitting option. Investors looking to solely live off their investments over the next 20 or so more years will want to included investments that will appreciate while […]

Retirees seeking a moderate risk in their exchange traded fund investment portfolios will want to lean more toward the safety of bonds but still hold enough equities to provide some level of capital appreciation, according to Morningstar. The moderate portfolio for retirees and pre-retirees is “appropriate for retirees with a time horizon (estimated life expectancy) […]

Conservative investors in retirement can tap exchange traded funds to build all-ETF portfolios featuring stocks and bonds. The conservative ETF investor aiming to protect wealth in retirement should limit exposure to equities and rely on the stability offered in bonds, along with other solid yield generating assets, writes Christine Benz, director of personal finance at […]

In late 2009, Charles Schwab Investment Management forayed into the exchange traded fund market by unveiling some of the lowest cost, if not the lowest cost index ETFs in various slices of the market including U.S. large, mid, and small-cap equity, U.S. REITs, fixed income, and international and emerging markets equities. How has the fund […]

Exchange traded funds from Vanguard and BlackRock dominate the list of top 20 ETFs by total distribution in the 401(k) and defined contribution business, according to a report this week. “ETFs are off to a slow start in terms of their distribution in 401k plans but we expect their prevalence to grow dramatically in the […]

Exchange traded funds that invest in U.S. small-cap and microcap stocks got a boost Monday from rallies in Timberland (NYSE: TBL), Graham Packaging (NYSE: GRM), Ness Technologies (NasdaqGS: NSTC), M&F Worldwide (NYSE: MFW) and other undersized companies. Vanguard Small Cap ETF (NYSEArca: VB) and iShares Russell Microcap (NYSEArca: IWC) were little changed Monday afternoon and […]

With all that has been going on in the world, small-cap equities and related exchange traded funds (ETFs) quietly hit recent highs in April, but the month of May was not as kind for the asset class. The iShares Russell 2000 (NYSEArca: IWM) is down 3.9% in the past month, Vanguard Small-Cap ETF (NYSEArca: VB) […]

Exchange traded funds that invest in small-cap stocks have fallen through their 50-day moving average in this week’s selling, breaching a key technical level. However, they rallied back from a similar setback in March. The $16 billion iShares Russell 2000 (NYSEArca: IWM), an ETF tracking a popular index of U.S. small caps, traded lower Tuesday. […]

Small-cap exchange traded funds (ETFs) have rallied hard after financial downturn, but some observers note that this trajectory won’t last and it is only a matter of time before this asset class cools down. The Russell 2000 Index is almost 2% shy of its record closing high, reports Jonathan Cheng for The Wall Street Journal. […]

U.S. small-cap exchange traded funds (ETFs) have yet to top their 2007 high, but they’ve easily outperformed blue-chip stocks over the past decade. Benchmarks following the market’s biggest stocks have trailed small and midsize companies over the last 10 years, writes Jason Zweig this weekend in The Wall Street Journal. Indeed, the iShares S&P 100 […]

Small-cap stocks, which are sensitive to sentiment on the overall U.S. economy, have stalled out recently within range of their 2007 peak. U.S. small-business confidence levels are also declining, according to a report this week. Small-cap exchange traded funds (ETFs) could slide if the outlook holds true, even as small-caps hover around four-year highs. [Small-Cap […]

Exchange traded funds (ETFs) that invest in U.S. small-cap stocks are closing in on their 2007 high as the economy gradually improves, although they followed the broader market lower Tuesday. With nearly $17 billion in assets, iShares Russell 2000 Index Fund (NYSEArca: IWM) is the most popular ETF for U.S. small caps. It was down […]

Exchange traded funds (ETFs) that invest in U.S. small-cap stocks rallied to new 52-week highs Wednesday as the sector erased the recent pullback. The iShares Russell 2000 Index Fund (NYSEArca: IWM), Vanguard Small-Cap ETF (NYSEArca: VB) and iShares S&P SmallCap 600 (NYSEArca: IJR) were among the small-cap ETFs setting fresh highs. The market segment has […]

Small-cap exchange traded funds (ETFs) have been doing very well for themselves compared to large-cap funds for much of the last decade. Despite the market’s volatility in the last few months, small-cap funds are among a select few still perched above their long-term trend lines. The opinions and forecasts expressed herein are solely those of […]

Small-capitalization stocks and related exchange traded funds (ETFs) have usually lead the markets as an economy recovers, and so far, the scenario has played out accordingly. Fund providers have rolled out a slew of new small-cap ETFs, but are they too late? The opinions and forecasts expressed herein are solely those of Tom Lydon, and […]