Small-cap ETFs invest in smaller companies that offer higher growth potential and diversification benefits beyond large-cap stocks. Historically, small-cap stocks have delivered a size premium over longer time periods.
Our model evaluates small-cap ETFs on cost, performance, momentum, liquidity, and tracking quality to identify the best options in this segment.
Top 0 Best Small Cap ETFs
Rankings based on our 5-factor quantitative model. Data refreshed daily. Past performance does not guarantee future results.
Methodology
Small-cap ETFs are scored against their small-cap peers. Liquidity is given extra attention since some small-cap funds may have wider spreads than their large-cap counterparts.
The performance factor compares returns within the small-cap universe to identify funds with consistently strong execution.
View all ETF rankings for the full 5-factor model applied across 600+ ETFs.
How to Use This List
Small-cap ETFs can add diversification to a portfolio dominated by large-cap holdings. A 10-20% allocation to small caps is common in diversified portfolios.
Consider whether you want a blend, growth, or value tilt within small caps, as each offers a different risk/return profile.
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Frequently Asked Questions
Is IWM a good investment?
IWM is the most popular Russell 2000 ETF and offers excellent liquidity. However, its expense ratio (0.19%) is higher than alternatives like VB (0.05%). Our composite score helps weigh these trade-offs.
Why invest in small cap ETFs?
Small-cap stocks have historically offered a "size premium" — higher long-term returns than large caps. They also provide diversification since smaller companies often behave differently than large-cap stocks.
Important Disclaimer
This content is for informational purposes only and does not constitute investment advice. All investments involve risk, including the possible loss of principal. Past performance does not guarantee future results. Always conduct your own research and consult a qualified financial advisor before making investment decisions. Blank Capital Research is not a registered investment advisor.