Over the long-haul, small-caps have historically outperformed.
“Small-cap stocks have earned a return premium of about 2% over large-cap stocks since 1926,” according to Morningstar analyst Michael Rawson. “However, this premium can vary drastically over time and has become smaller in recent decades.”
Related: An Unexpected Strength Of Small Cap ETFs
Investors interested in the small-cap category have a number of broad ETF options available.
Small-cap ETFs:
- iShares Russell 2000 ETF (NYSEArca: IWM)
- iShares Core S&P Small-Cap ETF (NYSEArca: IJR)
- Vanguard Small Cap ETF (NYSEArca: VB)
- Schwab U.S. Small-Cap ETF (NYSEArca: SCHA)
- WisdomTree SmallCap Dividend Fund (NYSEArca: DES)
- Schwab Fundamental U.S. Small Company ETF (NYSEArca: FNDA)
- Vanguard Russell 2000 ETF (NYSEArca: VTWO)
- SPDR S&P 600 Small Cap ETF (NYSEArca: SLY)
- First Trust Small Cap Core AlphaDEX Fund (Nasdaq: FYX)
- PowerShares S&P SmallCap Low Volatility Portfolio (NYSEArca: XSLV)
- WisdomTree SmallCap Earnings Fund (NYSEArca: EES)
- Oppenheimer Small Cap Revenue ETF (NYSEArca: RWJ)
- Vanguard S&P Small-Cap 600 ETF (NYSEArca: VIOO)
- iShares Morningstar Small-Cap ETF (NYSEArca: JKJ)
- PowerShares DWA SmallCap Momentum Portfolio (NYSEArca: DWAS)
- SPDR Russell 2000 ETF (NYSEArca: TWOK)
- SPDR Russell 2000 Low Volatility ETF (NYSEArca: SMLV)
- WisdomTree U.S. SmallCap Dividend Growth Fund (NasdaqGM: DGRS)
- Compass EMP U.S. Discovery 500 Enhanced Volatility Weighted Index ETF (NasdaqGM: CSF)
- iShares Enhanced U.S. Small-Cap ETF (NYSEArca: IESM)
- AlphaMark Actively Managed Small Cap ETF (NasdaqGM: SMCP)
- Compass EMP US Small Cap High Dividend 100 Volatility Weighted Index ETF (NasdaqGM: CSB)
- PowerShares Russell 2000 Equal Weight Portfolio (NYSEArca: EQWS)
- Compass EMP US Small Cap 500 Volatility Weighted Index ETF (NasdaqGM: CSA)
- iShares FactorSelect MSCI USA Small-Cap ETF (NYSEArca: SMLF)
- ProShares Russell 2000 Dividend Growers ETF (NYSEArca: SMDV)
- ETFS Zacks Earnings Small-Cap U.S. Index Fund (NYSEArca: ZSML)
Leveraged/inverse small-cap ETPs:
- Direxion Daily Small Cap Bull 3X Shares (NYSEArca: TNA)
- Direxion Daily Small Cap Bear 3X Shares (NYSEArca: TZA)
- ProShares UltraShort Russell 2000 ETF (NYSEArca: TWM)
- ProShares Short Russell 2000 ETF (NYSEArca: RWM)
- ProShares UltraPro Short Russell 2000 ETF (NYSEArca: SRTY)
- ProShares UltraShort Small Cap 600 ETF (NYSEArca: SDD)
- ProShares Short Small Cap 600 (NYSEArca: SBB)
- ProShares Ultra Russell2000 (NYSEArca: UWM)
- ProShares UltraPro Russell2000 (NYSEArca: URTY)
- ProShares Ultra SmallCap600 ETF (NYSEArca: SAA)
- UBS ETRACS Monthly Pay 2xLeveraged Small Cap High Dividend ETN (NYSEArca: SMHD).
- Direxion Daily Small Cap Bull 1.25X Shares (NYSEArca: LLSC)
- Direxion Daily Small Cap Bull 2x Shares (NYSEArca: SMLL)
- iPath Long Extended Russell 2000 TR Index ETN (NYSEArca: RTLA)
For more information on the small-cap segment, visit our small-cap category.