Another ETF that tracks the same theme is the First Trust Small Cap Value AlphaDEX Fund (NYSEArca: FYT) which is up 4.5% over the past three months. Year-to-date the ETF is up 21.1%. The fund weights heavy toward industrials and consumer discretionary. [A Look at a Small-Cap Dividend ETF]
Take note, the possibility for higher returns and more growth potential does come at a price. Smaller companies carry more risk and can present more volatility since they are in a growth phase. However, small-caps make great momentum plays and can properly diversify a portfolio.
Tisha Guerrero contributed to this article.
Full disclosure: Tom Lydon’s clients own IWM.