- The U.S. Small Cap Growth asset class has slightly trailed the performance of U.S. Large Cap Blend by 0.43% CAGR over the last 47 years
- The oldest U.S. Small Cap Growth ETF has outperformed an S&P 500 index fund by 3.13% CAGR over the last 19 years
- There are 18 ETFs in the U.S. Small Cap Growth category. 7 of these have been available for 10 years or longer
- This article compares the past performance of these 7 older ETFs
U.S. Small Cap Growth vs U.S. Large Cap Blend (aka the S&P 500)
The oldest U.S. Small Cap Growth ETF is the iShares S&P Small-Cap 600 Growth ETF (IJT). Its’ inception date was July 24, 2000. Since inception, IJT has outperformed an S&P 500 index fund by 3.13% CAGR.
IJT vs S&P 500 Index Fund: August 2000 – October 2019
IJT vs SPY: July 28, 2000 – November 1, 2019
There are 18 ETFs in the Morningstar Small Cap Growth category. 7 of these have inception dates prior to November 2, 2009. These 7 older ETFs are ranked by long-term performance only in the chart below.
The 4 best performing U.S Small Cap Growth ETFs were IJT, SLYG, VBK and RZG. The charts below depict how they performed head-to-head in the past.
IJT vs SLYG vs VBK vs RZG: April 2006 – October 2019
IJT vs SLYG vs VBK vs RZG vs SPY: March 7, 2006 – November 1, 2019
IJT vs SLYG
SLYG vs VBK
VBK vs RZG
Stated objectives of the 4 best performing U.S. Small Cap Growth ETFs:
IJT – The iShares S&P Small-Cap 600 Growth ETF seeks to track the investment results of an index composed of small-capitalization U.S. equities that exhibit growth characteristics. Exposure to U.S. small-cap stocks of companies whose earnings are expected to grow at an above-average rate relative to the market. Low cost and tax efficient. Use as a complement to a portfolio’s core holdings.
SLYG – The SPDR® S&P® 600 Small Cap Growth ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P® SmallCap 600 Growth IndexSM (the “Index”). The selection universe for the S&P SmallCap 600 Index includes all U.S. common equities with market capitalizations generally between $450 million and $2.1 billion at the time of inclusion. The Index includes stocks that exhibit the strongest growth characteristics based on: sales growth; earnings change to price; and momentum.
VBK – Vanguard Small-Cap Growth ETF. Seeks to track the performance of the CRSP US Small Cap Growth Index, which measures the investment return of small-capitalization growth stocks. Provides a convenient way to match the performance of a diversified group of small growth companies. Follows a passively managed, full-replication approach.
RZG – The Invesco S&P SmallCap 600® Pure Growth ETF (Fund) is based on the S&P SmallCap 600® Pure Growth Index (Index). The Fund will invest at least 90% of its total assets in securities that comprise the Index. The Index measures the performance of securities that exhibit strong growth characteristics in the S&P SmallCap 600® Index. Growth is measured by the following risk factors: sales growth, earnings change to price and momentum. The Fund and the Index are rebalanced annually.
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 articles on U.S. Small Cap Growth ETFs:
Best Long-Term Performance U.S. Small Cap Growth ETFs 1.2
Best Long-Term Performance U.S. Small Cap Growth ETFs 1.1
Disclosure: We currently own shares of IJT and we intend to buy more shares in the future. I am not a professional investment advisor. Please perform you 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 M1 Finance and Google AdSense.