In defense of IWC and FDM, the ETFs are not as pricey as some major small-cap funds. IWC’s P/E ratio is 24.6 while FDM’s is 15.2. The iShares Russell 2000 ETF (NYSEArca: IWM) sports a P/E of 27.4. Additionally, FDM and IWC offer robust exposure to two of this year’s top-performing sectors. Financials and consumer discretionary combine for over 44% of FDM’s weight and 41.3% of IWC’s weight.

iShares Micro-Cap ETF


ETF Trends editorial team contributed to this article. Tom Lydon’s clients own shares of IWC.