The next largest fund is a Vanguard product, VB (Vanguard Small Cap, Expense Ratio 0.10%) which currently has $8.1 billion in AUM, and then followed by two more iShares funds IWO (iShares Russell 2000 Growth, Expense Ratio 0.25%) and IWN (iShares Russell 2000 Value, Expense Ratio 0.25%) which have $5.75 and $5.74 billion in AUM respectively.
In fact, there are ten additional small cap equity focused ETFs in the universe all above $1 billion in assets under management.
To us, that’s a pretty simple message, institutional portfolio managers as well as retail investors and financial advisors love to index the Small-Cap equity segments of their portfolios and they love the broad array of products and depth available in the space.
Fund sponsors outside of iShares and Vanguard, including WisdomTree with DGS (WisdomTree Emerging Markets Small Cap Dividend, Expense Ratio 0.64%) and Schwab with SCHA (Schwab U.S. Small Cap Fund, Expense Ratio 0.10%) also have had nice success in the space in terms of raising assets, as both of these funds have north of $1.5 billion in AUM currently.
With a broad array of investment choices that range from straight market-cap weighted approaches, to revenue weighting, to dividend weighting, equal weighting, and fundamental/quantitatively driven strategies for example, there is no reason to believe that ETF asset growth in Small Caps will not continue.
For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at [email protected].
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