Tag: Small-Cap-Growth

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Best Long-Term Performance U.S. Small Cap Growth ETFs 1.2

  • The oldest available U.S. Small Cap Growth ETF has outperformed an S&P 500 index fund by 3.93% CAGR over the last 18 years
  • There are currently 17 ETFs available in the Morningstar category called Small Cap Growth. Seven of these funds have inception dates that are 10 years old or older
  • An allocation to Small Cap Growth in a worldwide equity portfolio can add growth and diversity

The U.S. Small Cap Growth asset class has data readily available going back to 1972. During the last 46 years, this asset class has done very well, but it did trail U.S. Large Cap Blend (S&P 500) by 0.39% CAGR. This should not dissuade investors from this asset class. During shorter periods, such as 5-, 10- or 15-years, Small Cap Growth can and has outperform the S&P 500 significantly.

U.S. Small Cap Growth vs U.S. Large Cap Blend: January 1972 – October 2018

Source: https://www.portfoliovisualizer.com/

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An Adventurous Idea for Small-Cap Investors

At a time when the U.S. small-cap stocks and exchange traded funds, such as the iShares Core S&P Small-Cap ETF (NYSEArca: IJR) and the iShares Russell 2000 ETF (NYSEArca: IWM), are trailing large-cap funds by wide margins, considering small-cap growth stocks may seem to be a risky proposition.

To be sure, the iShares S&P Small-Cap 600 Growth ETF (NASDAQ: IJT) has managed only a modest year-to-date return. The $4.2 billion IJT tracks the S&P SmallCap 600 Growth Index. Value stocks typically trade at cheaper prices relative to fundamental measures of value, such as earnings and the book value of assets. In contrast, growth stocks tend to run at higher valuations since investors expect the rapid growth in those company measures.

Read the full article at ETF Trends right here: An Adventurous Idea for Small-Cap Investors

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Best Long-Term Performance U.S. Small Cap Growth ETFs 1.1

Are you an aggressive growth investor? If so, you may want to consider investing in a U.S. Small Cap Growth ETF. Small cap growth equities are generally considered one of the most aggressive equity asset classes available. But, with over 1900 ETFs available, how do you find one with a great long-term track record. Fortunately, there are only 9 US Small Cap Growth ETFs listed at etfdb.com and only 7 of them are 10 years old or older.  Long-term performance is the #1 thing I look at when selecting an asset to invest in. Here is the list of ETFs I’ll be comparing:

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