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
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. 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.