Determining which one to choose is usually up to an investor’s appetite for risk, the type of exposure desired and how diversified one’s portfolio already happens to be.
The SPDR Dow Jones Large Cap Growth (NYSEArca: ELG) is a common choice for large cap growth stocks, whereas the iShares S&P Small Cap 600 (NYSEArca: IJR) is common for value oriented small-cap investors. Regardless of which way one goes, it is important to have a strategy and mind the trend lines. For more information on how to watch trend lines, check out our new book.
For more stories on strategy, visit our trend following category.
Kevin Grewal contributed to this article.