-
Asset Class: U.S. Small Cap Value
-
Long-Term Performance: 13.20% CAGR
-
Correlation to U.S. Markets: 0.89
-
U.S. Large Cap Blend Performance: 10.26% CAGR
-
Back test timeframe: January 1972 – October 2023
-
Oldest ETF back tested: iShares S&P Small-Cap 600 Value ETF (IJS)
-
Long-Term Performance: 8.65% CAGR
-
Correlation to U.S. Markets: 0.87
-
S&P 500 Performance: 6.68% CAGR
-
Back test timeframe: August 2000 – October 2023
-
Number of ETFs available in this asset class: 35
-
Number of ETFs in this asset class that are 10-years old or older: 15
U.S. Small Cap Value vs U.S. Large Cap Blend (aka S&P500): January 1972 – October 2023
IJS vs SPY: August 2000 – October 2023
IJS vs SPY: July 28, 2000 – November 3, 2023
The Deep Value ETF Accumulator rankings for the 15 oldest U.S. Small Cap Value ETFs:
The 5 top ranked U.S. Small Cap Value ETFs head-to-head comparisons:
RWJ vs XSVM vs EES vs VBR vs SLVY: March 2008 – October 2023
RWJ vs XSVM vs EES vs VBR vs SLVY: February 22, 2008 – November 3, 2023
Stated objectives of the 5 top ranked U.S. Small Cap Value ETFs:
RWJ – The Invesco S&P SmallCap 600 Revenue ETF (Fund) is based on the S&P SmallCap 600® Revenue-Weighted Index (Index). The Fund will invest at least 90% of its total assets in securities that comprise the Index. The Index is constructed using a rules-based approach that re-weights securities of the S&P SmallCap 600® Index according to the revenue earned by the companies, with a maximum 5% per company weighting. The Fund and Index are rebalanced quarterly.
XSVM – The Invesco S&P SmallCap Value with Momentum ETF (Fund) is based on the S&P 600 High Momentum Value Index (Index). The Fund will invest at least 90% of its total assets in the component securities that comprise the Index. The Index is composed of 120 securities in the S&P SmallCap 600® Index having the highest “value scores” and “momentum scores,” calculated pursuant to the index methodology. Index constituents are weighted by their value scores; securities with higher value scores receive relatively greater weights. The Fund and the Index are rebalanced and reconstituted semi-annually.
EES – WisdomTree U.S. SmallCap Fund seeks to track the investment results of earnings-generating small-cap companies in the U.S. equity market. Gain broad U.S. small cap equity exposure to profitable companies. Use to complement or replace small cap active and passive strategies with the potential for more favorable valuations.
VBR – Vanguard Small-Cap Value ETF. Seeks to track the performance of the CRSP US Small Cap Value Index, which measures the investment return of small-capitalization value stocks. Provides a convenient way to match the performance of a diversified group of small value companies. Follows a passively managed, full-replication approach.
SLYV – The SPDR® S&P 600™ Small Cap Value ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P SmallCap 600® Value Index (the “Index”). The Index includes stocks that exhibit the strongest value characteristics based on: book value to price ratio; earnings to price ratio; and sales to price ratio. The S&P SmallCap 600® Value Index measures the performance of the small-capitalization value segment in the U.S. equity market. The Index consists of those stocks in the S&P Small Cap 600® Index exhibiting the strongest value characteristics based on: (i)book value to price ratio; (ii) earnings to price ratio; and (iii) sales to price ratio. The Index is market capitalization weighted.
Thank you for taking time to read this article. If you found it useful, please share it with a friend.
Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator
Previous Deep Value ETF Accumulator article on U.S. Small Cap Value ETFs:
4 Best U.S. Small Cap Value ETFs to Own Long-Term 1.6
Disclosure: We currently own shares of RWJ and we intend to buy more shares in the future. I am not a professional investment advisor. Please perform your own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to Google AdSense.