Small-cap ETFs debut
These funds are hoping that smaller companies, which are more agile, can strike it rich as the economy recovers.
Exchange-traded fund (ETF) providers are pinning their hopes to these new small caps as the economy continues to recover. Many of these ETFs are tied to smaller companies in specific industries, such as utilities, materials or consumer staples.
"Small caps traditionally lead the way out of a recession," the president of one ETF firm told Index Universe.
Small-cap ETFs are hot, with investors funneling 87% more assets into them than a year ago, Index Universe reports. Large-cap ETFs grew by about 43% in that same time frame.
Some of these small-cap ETFs have an international focus, such as the new Market Vectors Latin America Small Cap Index ETF (LATM) from Van Eck. And Index IQ has a small-cap Taiwan ETF coming out soon.
Here are some other (new and old) small-cap ETFs to check out, according to Index Universe:
The iShares Russell 2000 Index (IWM), which gained about 28% last year.
The iShares S&P SmallCap 600 (IJR)
Vanguard's Small Cap Index (VB)
The Index IQ Australia Small Cap ETF (KROO)
The Index IQ Canada Small Cap ETF (CNDA)
The IQ South Korea Small Cap ETF (SKOR)
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