Equity: U.S. - Small Cap

EWSC Top Performer Intra-day
Price $49.02
Today’s Change +0.35%(0.73)
1:33pm 06/22/2017
RNSC Bottom Performer Intra-day
Price 0.00
Today’s Change 0.00%(0.00)
  • Overview
  • Efficiency
  • Tradability
  • Fit

ETF.com Insight

The US small-cap equity space is crowded—20+ funds offer some take on small-caps, be it straight-ahead market-cap, an index-based strategy or active management.

Far and awayin some cases, tracking differences blur the distinction between fees the most popular small-cap ETFs are those tracking market-weight indexes: the Russell 2000 and S&P 600. In fact, three of the market-weight funds (IWM, IJR and VB) together dominate small-cap assets. The rest of the assets are split between lesser-known market-cap funds, fundamentals-focused strategies and alpha-seeking funds.

The good news for small-cap investors is the top funds in the space capture the market return at extremely low cost. Taking the largest small-cap ETF as an example, IWM offers exposure to nearly 2,000 stocks with excellent liquidity, at typical holding costs lower than its fee. Vanguard’s VB, which tracks 1,500 stocks in a CRSP index, also tends to cost even less than its low fee.

What distinguishes the large number of market-weight ETFs from each other? Often, the answer is “very little.” Expense ratios and liquidity are the main distinguishing factors, and in some cases, tracking differences blur the distinction between fees. Investors here can choose their favorite index and are still likely to get an excellent price and deep liquidity.

The small-cap ETFs tracking alternative indexes are a little more varied. The remaining funds offer niche strategies in everything from dividend weighted, revenue weighted, to so-called 'core' indexes. Some of these funds are barely a blip on the radar, asset-wise, but others, like the WisdomTree SmallCap Dividend ETF (DES), have attracted hundreds of millions. The less popular of these ETFs often have serious liquidity concerns, so keep an eye on the Tradability score of anything that looks appealing.

Those that prefer active management have 1 choice (IESM), but assets and liquidity are weak for the relatively new fund. (Insight updated 06/22/17)

All Funds (41)

SCHA $5.29 B 5287519217.4 very low all-in costs

A 96
E
100
100
T
98
98
F
96
96

VB $18.5 B 18503776079.64 dirt-cheap all-in costs

A 94
E
100
100
T
99
99
F
94
94

DES $1.94 B 1940848560 stable and liquid

A 93
E
92
92
T
94
94
F
93
93

FNDA $1.86 B 1859101076.25 viable assets and liquidity

A 93
E
97
97
T
97
97
F
93
93

SLY $736.94 M 736941389.13471 IJR is more liquid

A 92
E
97
97
T
85
85
F
92
92

VIOO $625.83 M 625828500 Decent but eclipsed by IJR

A 92
E
97
97
T
97
97
F
92
92

IJR $30.16 B 30156349815 Trades easily

A 92
E
100
100
T
98
98
F
92
92

JKJ $240.59 M 240592500 not as liquid as some

A 90
E
97
97
T
73
73
F
90
90

IWM $38.58 B 38578788045 Extremely large & liquid

A 89
E
100
100
T
98
98
F
89
89

VTWO $1.03 B 1034491500 rock solid but lags IWM in liquidiy

A 88
E
97
97
T
98
98
F
88
88

TWOK $222.22 M 222219790.2 lags IWM and VTWO in liquidity

A 87
E
96
96
T
79
79
F
87
87

EES $485.14 M 485142450 tracks its index well

A 83
E
94
94
T
80
80
F
83
83

SMLV $210.8 M 210797980.8 Low AUM, low trading volume

A 71
E
98
98
T
67
67
F
71
71

XSLV $918.9 M 918895650 Low Volatility

A 66
E
96
96
T
91
91
F
66
66

FYX $480.26 M 480261359.774 very expensive to hold

B 90
E
88
88
T
93
93
F
90
90

EQWS $21.67 M 21674950 paltry assets

B 88
E
90
90
T
59
59
F
88
88

PSC $274.63 M 274629378.757 N/A

B 80
E
91
91
T
51
51
F
80
80

CSF $55.36 M 55357425 Low-vol market timer

B 79
E
86
86
T
66
66
F
79
79

RWJ $541.11 M 541113170.5 high holding costs

B 79
E
85
85
T
89
89
F
79
79

DGRS $99.55 M 99547500 investor interest still weak

B 75
E
93
93
T
72
72
F
75
75

DWAS $183.68 M 183683100 popular but not cheap to hold

B 68
E
91
91
T
77
77
F
68
68

EWSC $34.38 M 34376300 same index as EQWS

C 89
E
86
86
T
56
56
F
89
89

SMMV $8.34 M 8336430 N/A

C 61
E
84
84
T
62
62
F
61
61

SCAP $4.27 M 4269924.612 N/A

D 75
E
68
68
T
49
49
F
75
75

NUSC $12.95 M 12952450 N/A

F 92
E
55
55
T
57
57
F
92
92

XSHD $8.63 M 8628224.652 N/A

F 48
E
54
54
T
49
49
F
48
48

OUSM $37.11 M 37107970.2 N/A

N/A 0
E
0
-1
T
0
-1
F
0
-1

SMLF $48.56 M 48558690 New; trade with care

N/A 0
E
0
-1
T
0
-1
F
0
-1

XSHQ $2.51 M 2507925.079 N/A

N/A 0
E
0
-1
T
0
-1
F
0
-1

FLQS $3.71 M 3709500 N/A

N/A 0
E
0
-1
T
0
-1
F
0
-1

JPSE $33.79 M 33789155.299144 N/A

N/A 0
E
0
-1
T
0
-1
F
0
-1

CSA $23.09 M 23091530 higher fee

N/A 0
E
0
-1
T
0
-1
F
0
-1

CSML $109.55 M 109550425.184 N/A

N/A 0
E
0
-1
T
0
-1
F
0
-1

CSB $32.18 M 32176800 N/A

N/A 0
E
0
-1
T
0
-1
F
0
-1

DESC $4.73 M 4733431.556 N/A

N/A 0
E
0
-1
T
0
-1
F
0
-1

CALF $2.44 M 2439000 N/A

N/A 0
E
0
-1
T
0
-1
F
0
-1

SMDV $428.18 M 428184000 low assets, weak liquidity

N/A 0
E
0
-1
T
0
-1
F
0
-1

RNSC -- N/A

N/A 0
E
0
-1
T
0
-1
F
0
-1

ZSML $1.34 M 1344500 Looks for companies with the biggest earnings increases

F 68
E
54
54
T
39
39
F
68
68

IESM $8.36 M 8361150 thin investor interest

C 78
E
84
84
T
58
58
F
78
78

EWRS $35.93 M 35931000 same index as EQWS

B 72
E
87
87
T
59
59
F
72
72

ETF.com Grade as 06/15/17

Equity: U.S. - Small Cap

Performance Dispersion
Performance  [as of 06/21/17] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
Benchmark: MSCI USA Small Cap1.71%3.62%4.62%19.26%6.72%14.70%--
A 95.757481SCHA5287519217.4SCHASchwab U.S. Small-Cap ETF1.80%3.40%3.39%18.85%6.47%14.90%--
A 94.335634VB18503776079.64VBVanguard Small-Cap ETF1.76%3.50%4.76%18.21%6.62%14.91%7.65%
A 93.22421DES1940848560DESWisdomTree SmallCap Dividend Fund1.03%1.54%-2.87%15.24%7.57%14.77%7.01%
A 93.080913FNDA1859101076.25FNDASchwab Fundamental US Small Co. Index ETF0.73%1.60%1.03%17.97%6.54%----
A 92.311342SLY736941389.13471SLYSPDR S&P 600 Small Cap ETF1.88%2.86%1.01%20.55%8.92%16.07%8.60%
A 92.307973VIOO625828500VIOOVanguard S&P Small-Cap 600 ETF1.98%2.74%1.04%20.49%8.92%16.08%--
A 92.125721IJR30156349815IJRiShares Core S&P Small Cap ETF1.88%2.80%1.02%20.41%8.88%16.12%8.10%
A 90.299608JKJ240592500JKJiShares Morningstar Small-Cap ETF1.12%3.03%2.44%19.04%6.53%14.70%6.75%
A 88.534655IWM38578788045IWMiShares Russell 2000 ETF2.51%4.39%3.71%23.04%7.18%14.51%6.78%
A 88.426633VTWO1034491500VTWOVanguard Russell 2000 ETF2.63%4.40%3.84%23.08%7.15%14.46%--
A 86.712167TWOK222219790.2TWOKSPDR Russell 2000 ETF2.59%4.57%3.95%23.33%7.25%----
A 82.808791EES485142450EESWisdomTree SmallCap Earnings Fund1.70%3.55%-0.63%22.18%6.68%14.97%8.12%
A 70.75943SMLV210797980.8SMLVSPDR SSGA US Small Cap Low Volatility Index ETF1.66%2.28%-1.59%21.41%10.58%----
A 66.107177XSLV918895650XSLVPowerShares S&P SmallCap Low Volatility Portfolio2.90%3.78%0.62%21.59%13.22%----
B 90.260846FYX480261359.774FYXFirst Trust Small Cap Core AlphaDEX Fund2.36%3.72%1.67%19.25%4.69%13.61%6.60%
B 87.996914EQWS21674950EQWSPowerShares Russell 2000 Equal Weight Portfolio1.67%2.75%0.43%19.72%6.27%13.20%4.12%
B 79.85872PSC274629378.757PSCPrincipal U.S. Small Cap Index ETF3.14%1.95%4.34%--------
B 79.355656CSF55357425CSFVictoryShares US Discovery Enhanced Volatility Weighted Index ETF2.00%3.60%1.10%23.47%------
B 79.261716RWJ541113170.5RWJOppenheimer Small Cap Revenue ETF-0.71%-0.46%-4.50%15.74%5.37%15.80%--
B 75.071087DGRS99547500DGRSWisdomTree US Smallcap Quality Dividend Growth Fund0.92%2.29%-2.39%16.98%7.07%----
B 68.228236DWAS183683100DWASPowerShares DWA SmallCap Momentum Portfolio4.56%7.82%5.07%21.32%2.90%----
C 89.17949EWSC34376300EWSCGuggenheim S&P SmallCap 600 Equal Weight ETF1.07%1.11%-2.03%18.49%2.53%11.56%--
C 60.690424SMMV8336430SMMViShares Edge MSCI Min Vol USA Small-Cap ETF2.71%4.80%7.18%--------
D 75.345821SCAP4269924.612SCAPAdvisorShares Cornerstone Small Cap ETF2.79%4.46%4.56%--------
F 92.072292NUSC12952450NUSCNuShares ESG Small-Cap ETF1.96%3.43%4.90%--------
F 48.261759XSHD8628224.652XSHDPowerShares S&P SmallCap High Dividend Low Volatility Portfolio1.43%0.25%-4.08%--------
N/A 0OUSM37107970.2OUSMO'Shares FTSE Russell Small Cap Quality Dividend ETF1.36%1.86%2.60%--------
N/A 0SMLF48558690SMLFiShares Edge MSCI Multifactor USA Small-Cap ETF2.53%3.36%1.87%21.05%------
N/A 0XSHQ2507925.079XSHQPowerShares S&P SmallCap Quality Portfolio-1.27%------------
N/A 0FLQS3709500FLQSFranklin LibertyQ U.S. Small Cap Equity ETF1.43%------------
N/A 0JPSE33789155.299144JPSEJPMorgan Diversified Return U.S. Small Cap Equity ETF1.69%3.05%3.40%--------
N/A 0CSA23091530CSAVictoryShares US Small Cap Volatility Wtd Index ETF1.55%3.27%1.02%23.10%------
N/A 0CSML109550425.184CSMLIQ Chaikin U.S. Small Cap ETF1.41%------------
N/A 0CSB32176800CSBVictoryShares US Small Cap High Div Volatility Wtd ETF2.03%2.44%-2.08%16.23%------
N/A 0DESC4733431.556DESCDeutsche X-trackers Russell 2000 Comprehensive Factor ETF1.92%3.29%-0.64%--------
N/A 0CALF2439000CALFPacer U.S. Small Cap Cash Cows 100 ETF--------------
N/A 0SMDV428184000SMDVProShares Russell 2000 Dividend Growers ETF3.47%4.29%1.46%19.42%------
N/A 0RNSCRNSCFirst Trust Small Cap US Equity Select ETF--------------
F 67.528426ZSML1344500ZSMLETFS Zacks Earnings Small-Cap U.S. Index Fund5.28%14.69%-4.28%32.80%------
C 78.062121909754IESM8361150IESMiShares Enhanced US Small-Cap ETF2.65%11.34%13.46%12.25%7.95%----
B 71.940939152313EWRS35931000EWRSGuggenheim Russell 2000 Equal Weight-13.64%-18.45%-14.72%-20.44%1.32%2.67%--
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

ETF.com Efficiency Insight

Fee wars among ETF issuers have driven holding costs down. Small-cap ETFs holding hundreds of stocks are now available for under 15 basis points annually. Low fees are a positiveSCHA's actual holding cost is even lower than its fee contributor to great tracking and to actual investor holding costs. Securities-lending revenue and turnover due to non-cap-weighted strategies also drive tracking performance.

SCHA and VB stand out as low-fee leaders charging under 10 bps. Amazingly, each fund’s actual holding cost (as measured by median tracking difference) is even lower than its fee to the point where the funds are effectively free to hold.

GURX, ZSML and FYX stand out at the other extreme with the segment’s highest fees. Actual holding costs for these are higher still, approaching 100 bps.

Such cost differences count for a lot in the case of large, multiyear allocations.

Costs and tracking differences certainly vary among the funds, but so do risks, especially the risk that an ETF will close due to lack of interest. Several small-cap funds have tiny asset bases, and could be shut down by their issuers. (Other metrics beyond AUM also go into our qualitative risk level.) Specifically, watch out for SMLV, DGRS and PXSC. If a fund does close, rarely do investors lose the value of their investment, but closure does typically trigger a tax event for holders of the ETF, and investors must cope with reinvestment. All things equal, it’s clearly preferable to invest in a stable fund.

Tracking risks aren’t a consideration for the segment’s lone actively-managed fund, IESM. Still, investors here should keep a watchful eye on the funds slender asset base.

One last caveat: Investors should look beyond holdings costs as a proxy for all-in costs when choosing an ETF in this space. Trading costs can quickly outweigh the savings from choosing cheaper but less liquid funds, especially when the fee difference is a handful of basis points for shorter holding periods. (Insight updated 06/22/17)

All Funds (41)

100
99.642805
100
99.5124
98
97.759025
97
97.217678
97
97.193919
97
97.015586
97
96.789082
97
96.53346
96
96.485379
96
95.996581
94
93.83107
93
93.346333
92
92.06852
91
90.916842
91
90.70199
90
90.390212
88
88.249785
86
86.292902
86
86.084544
85
85.279352
84
84.010245
68
68.289189
55
55.393062
54
53.942477
100
100
100
100
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
54
54.11577
84
83.629378793993
87
87.007897976144

ETF.com Grade as 06/15/17

Equity: U.S. - Small Cap

Tracking Difference (12 Month)

Ticker Expense Ratio Median Max. Upside Max. Downside Max LT/ST Cap Gains Rate Rule Legal Structure Fund Closure Risk Efficiency
EES WisdomTree SmallCap Earnings Fund 0.38% -0.21% -0.06% -0.37% 20.00% / 39.60% Low 93.83107
CSML IQ Chaikin U.S. Small Cap ETF 0.35% -- -- -- 20.00% / 39.60% Low 0
SLY SPDR S&P 600 Small Cap ETF 0.15% -0.05% 0.01% -0.16% 20.00% / 39.60% Low 97.015586
DESC Deutsche X-trackers Russell 2000 Comprehensive Factor ETF 0.30% -- -- -- 20.00% / 39.60% High 0
EQWS PowerShares Russell 2000 Equal Weight Portfolio 0.25% -0.35% -0.19% -0.43% 20.00% / 39.60% High 90.390212
CALF Pacer U.S. Small Cap Cash Cows 100 ETF 0.59% -- -- -- 20.00% / 39.60% Low 0
SMDV ProShares Russell 2000 Dividend Growers ETF 0.40% -- -- -- 20.00% / 39.60% Low 0
SCAP AdvisorShares Cornerstone Small Cap ETF 0.90% -- -- -- 20.00% / 39.60% High 68.289189
RNSC First Trust Small Cap US Equity Select ETF 0.60% -- -- -- 20.00% / 39.60% Low 0
SMLF iShares Edge MSCI Multifactor USA Small-Cap ETF 0.30% -0.63% -0.19% -0.87% 20.00% / 39.60% Medium 0
SMMV iShares Edge MSCI Min Vol USA Small-Cap ETF 0.20% -- -- -- 20.00% / 39.60% High 84.010245
FNDA Schwab Fundamental US Small Co. Index ETF 0.25% -0.27% -0.19% -0.41% 20.00% / 39.60% Low 96.789082
SMLV SPDR SSGA US Small Cap Low Volatility Index ETF 0.12% -0.16% 0.16% -0.34% 20.00% / 39.60% Low 97.759025
PSC Principal U.S. Small Cap Index ETF 0.38% -- -- -- 20.00% / 39.60% Low 90.70199
FYX First Trust Small Cap Core AlphaDEX Fund 0.64% -0.52% -0.45% -0.66% 20.00% / 39.60% Low 88.249785
TWOK SPDR Russell 2000 ETF 0.10% 0.18% 0.32% -0.05% 20.00% / 39.60% Low 96.485379
CSA VictoryShares US Small Cap Volatility Wtd Index ETF 0.35% -- -- -- 20.00% / 39.60% High 0
JPSE JPMorgan Diversified Return U.S. Small Cap Equity ETF 0.29% -- -- -- 20.00% / 39.60% High 0
VB Vanguard Small-Cap ETF 0.06% 0.04% 0.07% 0.01% 20.00% / 39.60% Low 99.5124
CSB VictoryShares US Small Cap High Div Volatility Wtd ETF 0.35% -- -- -- 20.00% / 39.60% Medium 0
XSHD PowerShares S&P SmallCap High Dividend Low Volatility Portfolio 0.30% -- -- -- 20.00% / 39.60% High 53.942477
IJR iShares Core S&P Small Cap ETF 0.07% -0.02% 0.04% -0.12% 20.00% / 39.60% Low 100
VIOO Vanguard S&P Small-Cap 600 ETF 0.15% 0.06% 0.14% -0.09% 20.00% / 39.60% Low 97.193919
CSF VictoryShares US Discovery Enhanced Volatility Weighted Index ETF 0.38% -- -- -- 20.00% / 39.60% Low 86.084544
NUSC NuShares ESG Small-Cap ETF 0.40% -- -- -- 20.00% / 39.60% High 55.393062
IWM iShares Russell 2000 ETF 0.20% 0.07% 0.11% 0.02% 20.00% / 39.60% Low 99.642805
VTWO Vanguard Russell 2000 ETF 0.15% 0.03% 0.06% -0.01% 20.00% / 39.60% Low 97.217678
DES WisdomTree SmallCap Dividend Fund 0.38% -0.30% -0.08% -0.44% 20.00% / 39.60% Low 92.06852
OUSM O'Shares FTSE Russell Small Cap Quality Dividend ETF 0.48% -- -- -- 20.00% / 39.60% Low 0
JKJ iShares Morningstar Small-Cap ETF 0.25% -0.19% -0.06% -0.33% 20.00% / 39.60% Low 96.53346
XSLV PowerShares S&P SmallCap Low Volatility Portfolio 0.25% -0.29% -0.23% -0.40% 20.00% / 39.60% Low 95.996581
DGRS WisdomTree US Smallcap Quality Dividend Growth Fund 0.38% -0.25% -0.07% -0.40% 20.00% / 39.60% Low 93.346333
XSHQ PowerShares S&P SmallCap Quality Portfolio 0.29% -- -- -- 20.00% / 39.60% Low 0
RWJ Oppenheimer Small Cap Revenue ETF 0.39% -0.71% -0.51% -1.16% 20.00% / 39.60% Low 85.279352
DWAS PowerShares DWA SmallCap Momentum Portfolio 0.60% -0.60% -0.49% -0.73% 20.00% / 39.60% Low 90.916842
FLQS Franklin LibertyQ U.S. Small Cap Equity ETF 0.35% -- -- -- 20.00% / 39.60% Low 0
SCHA Schwab U.S. Small-Cap ETF 0.05% -0.00% 0.07% -0.04% 20.00% / 39.60% Low 100
EWSC Guggenheim S&P SmallCap 600 Equal Weight ETF 0.41% -0.37% -0.22% -0.70% 20.00% / 39.60% High 86.292902
ZSML ETFS Zacks Earnings Small-Cap U.S. Index Fund -- -- -- 20.00% / 39.60% Closing 54.11577
IESM iShares Enhanced US Small-Cap ETF -- -- -- 20.00% / 39.60% Closing 83.629378793993
EWRS Guggenheim Russell 2000 Equal Weight -0.13% 0.02% -0.39% 20.00% / 39.60% Low 87.007897976144

ETF.com Tradability Insight

Tradability can determine whether a small-cap ETF is truly investment-worthy or not. Several funds with otherwise-attractive strategies and efficient management trade at large spreads. TheIWM trades more than $3B most days, a massive sum cost of a bad trade can far outweigh the small differences in annual fees between competing ETFs.

The largest funds here provide some of the best liquidity that ETFs have to offer. IWM, iShares Russell 2000 ETF, trades well more than $3B most days—a massive sum—at penny-wide spreads. In fact, all three of the top-trading small-cap funds (IWM, IJR and VB) trade huge amounts daily, and will absorb institutional-size trades with little impact. To be sure, these funds offer outstanding Tradability for retail-sized orders too.

However, watch out for the funds that occupy the other end of the liquidity spectrum. For instance, PXSC trades at very thin volumes—under 1,000 shares most days—and spreads are wide. Placing a market order in such a fund is a recipe for high cost execution.

Poor liquidity isn’t confined to more esoteric strategies— plain-vanilla funds like TWOK (the SPDR Russell 2000) trade thinly, so double-check Tradability scores even if the fund sounds safe. All told, poor liquidity can add significant cost—and time spent—to the investment. The silver lining in the US small-cap segment is that the primary liquidity of these ETFs tends to be high, so if you can place large transactions through a liquidity provider, you’re still likely to get a fair price. Institutional traders should nonetheless check for potential price impact for creates and redeems (via underlying volume/unit), as funds like SMLV, IESM and XSLV have less liquid underlying names. (Insight updated 06/22/17)

All Funds (41)

99
99.035877
98
98.368146
98
98.339459
98
98.065011
98
98.025678
97
97.166696
97
96.689308
94
93.653015
93
92.564121
91
90.917025
89
88.869163
85
84.823356
80
79.971108
79
78.749918
77
76.512417
73
72.539676
72
71.885722
67
67.170092
66
66.124087
62
62.052819
59
59.319834
57
57.31557
56
56.269554
51
51.206429
49
49.410979
49
49.053239
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
39
39.34955
58
57.52387108872
59
59.346433883911

ETF.com Grade as 06/15/17

Equity: U.S. - Small Cap

Ticker Median Daily Volume ($) Average Spread Creation Unit/Day Market Hours Overlap Underlying Volume/Unit % Creation Cost Per Unit (%) Impediment to Creations Score - Tradability
IWM iShares Russell 2000 ETF $3.41 B 0.01% 494.36 100.00% 0.06% 0.04% None 98.339459
SCAP AdvisorShares Cornerstone Small Cap ETF $5.69 K 0.65% 0.00 100.00% 0.07% 0.06% None 49.053239
JKJ iShares Morningstar Small-Cap ETF $324.35 K 0.11% 0.04 100.00% 0.22% 0.01% None 72.539676
SMMV iShares Edge MSCI Min Vol USA Small-Cap ETF $29.0 K 0.24% 0.02 100.00% 0.05% 0.08% None 62.052819
RWJ Oppenheimer Small Cap Revenue ETF $1.87 M 0.17% 0.59 100.00% 0.21% 0.09% None 88.869163
PSC Principal U.S. Small Cap Index ETF $6.52 K 0.58% 0.00 100.00% 0.04% 0.10% None 51.206429
CSA VictoryShares US Small Cap Volatility Wtd Index ETF $69.71 K 0.35% 0.03 100.00% 0.10% 0.04% None 0
SCHA Schwab U.S. Small-Cap ETF $21.07 M 0.04% 6.70 100.00% 0.02% 0.05% None 98.065011
JPSE JPMorgan Diversified Return U.S. Small Cap Equity ETF $95.55 K 0.21% 0.07 100.00% 0.03% 0.18% None 0
CSB VictoryShares US Small Cap High Div Volatility Wtd ETF $73.25 K 0.29% 0.04 100.00% 0.49% 0.01% None 0
SLY SPDR S&P 600 Small Cap ETF $2.02 M 0.32% 0.33 100.00% 0.16% 0.05% None 84.823356
XSHD PowerShares S&P SmallCap High Dividend Low Volatility Portfolio $35.54 K 0.52% 0.03 100.00% 0.51% 0.04% None 49.410979
CSF VictoryShares US Discovery Enhanced Volatility Weighted Index ETF $213.54 K 0.29% 0.10 100.00% 0.10% 0.04% None 66.124087
SMDV ProShares Russell 2000 Dividend Growers ETF $1.88 M 0.15% 1.39 100.00% 0.60% 0.02% None 0
NUSC NuShares ESG Small-Cap ETF $18.19 K 0.43% 0.01 100.00% 0.02% 0.04% None 57.31557
DES WisdomTree SmallCap Dividend Fund $5.1 M 0.13% 1.27 100.00% 0.18% 0.04% None 93.653015
SMLF iShares Edge MSCI Multifactor USA Small-Cap ETF $74.17 K 0.63% 0.04 100.00% 0.05% 0.08% None 0
OUSM O'Shares FTSE Russell Small Cap Quality Dividend ETF $399.68 K 0.20% 0.31 100.00% 0.04% 0.04% None 0
DGRS WisdomTree US Smallcap Quality Dividend Growth Fund $324.2 K 0.18% 0.20 100.00% 0.16% 0.03% None 71.885722
SMLV SPDR SSGA US Small Cap Low Volatility Index ETF $488.01 K 0.30% 0.11 100.00% 0.66% 0.01% None 67.170092
XSHQ PowerShares S&P SmallCap Quality Portfolio $0 0.51% 0 100.00% -- 0.04% None 0
DWAS PowerShares DWA SmallCap Momentum Portfolio $611.84 K 0.28% 0.29 100.00% 0.38% 0.02% None 76.512417
TWOK SPDR Russell 2000 ETF $652.4 K 0.24% 0.16 100.00% 0.04% 0.06% None 78.749918
FLQS Franklin LibertyQ U.S. Small Cap Equity ETF $0 0.24% 0 100.00% -- 0.10% None 0
EES WisdomTree SmallCap Earnings Fund $920.64 K 0.41% 0.57 100.00% 0.08% 0.15% None 79.971108
VB Vanguard Small-Cap ETF $85.71 M 0.03% 25.75 100.00% 0.02% 0.01% None 99.035877
CSML IQ Chaikin U.S. Small Cap ETF $550.37 K 0.19% 0.45 -- -- 0.05% None 0
EQWS PowerShares Russell 2000 Equal Weight Portfolio $29.35 K 0.32% 0.01 100.00% 0.10% 0.05% None 59.319834
VIOO Vanguard S&P Small-Cap 600 ETF $2.92 M 0.05% 0.93 100.00% 0.08% 0.02% None 97.166696
CALF Pacer U.S. Small Cap Cash Cows 100 ETF $18.19 K 0.29% 0.03 -- -- -- None 0
VTWO Vanguard Russell 2000 ETF $6.06 M 0.04% 2.20 100.00% 0.03% 0.04% None 98.368146
RNSC First Trust Small Cap US Equity Select ETF -- -- 0.00 -- -- -- None 0
FNDA Schwab Fundamental US Small Co. Index ETF $6.31 M 0.10% 3.67 100.00% 0.02% 0.03% None 96.689308
XSLV PowerShares S&P SmallCap Low Volatility Portfolio $5.05 M 0.14% 2.35 100.00% 0.39% 0.02% None 90.917025
FYX First Trust Small Cap Core AlphaDEX Fund $1.3 M 0.14% 0.47 100.00% 0.09% 0.02% None 92.564121
EWSC Guggenheim S&P SmallCap 600 Equal Weight ETF $59.16 K 0.41% 0.02 100.00% 0.11% 0.12% None 56.269554
IJR iShares Core S&P Small Cap ETF $163.56 M 0.02% 46.67 100.00% 0.09% 0.04% None 98.025678
DESC Deutsche X-trackers Russell 2000 Comprehensive Factor ETF $13.78 K 0.15% 0.01 100.00% 0.07% 0.13% None 0
ZSML ETFS Zacks Earnings Small-Cap U.S. Index Fund $0 0.00 100.00% 0.02% 0.02% None 39.34955
IESM iShares Enhanced US Small-Cap ETF $102.89 K 0.06 100.00% 0.00% 0.06% None 57.52387108872
EWRS Guggenheim Russell 2000 Equal Weight $134.43 K 0.07 98.00% 0.09% 0.17% None 59.346433883911

ETF.com/ Block Liquidity

JPSE
5
4
3
2
1
CSF
5
4
3
2
1
DES
5
4
3
2
1
OUSM
5
4
3
2
1
DGRS
5
4
3
2
1
DWAS
5
4
3
2
1
EES
5
4
3
2
1
FNDA
5
4
3
2
1
FYX
5
4
3
2
1
IJR
5
4
3
2
1
IWM
5
4
3
2
1
JKJ
5
4
3
2
1
RWJ
5
4
3
2
1
SCHA
5
4
3
2
1
SLY
5
4
3
2
1
SMLV
5
4
3
2
1
TWOK
5
4
3
2
1
VB
5
4
3
2
1
VIOO
5
4
3
2
1
VTWO
5
4
3
2
1
XSLV
5
4
3
2
1
EWSC
5
4
3
2
1
DESC
5
4
3
2
1
SCAP
5
4
3
2
1
SMMV
5
4
3
2
1
PSC
5
4
3
2
1
CSA
5
4
3
2
1
CSB
5
4
3
2
1
NUSC
5
4
3
2
1
EQWS
5
4
3
2
1
SMDV
5
4
3
2
1
SMLF
5
4
3
2
1
XSHD
5
4
3
2
1
XSHQ
5
4
3
2
1
FLQS
5
4
3
2
1
CSML
5
4
3
2
1
CALF
5
4
3
2
1
RNSC
5
4
3
2
1
ZSML
5
4
3
2
1
IESM
5
4
3
2
1
EWRS
5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

No matter what kind of small-cap exposure investors are looking for, there are plenty of ETF options. Choices range from those that simply capture the market return to funds delivering aThe Russell 2000 is an excellent index for capturing the small-cap market range of niche strategies and alternate weightings.

Among those offering the market return, a few names stand out. The Vanguard Small-Cap ETF (VB) earns the highest score here, tracking a comprehensive CRSP index that holds roughly 1,500 small-cap stocks. Schwab’s SCHA also earns high marks, tracking a Dow Jones Index of over 2,000 stocks. Surprisingly, funds tracking the Russell 2000 Index, including the asset-behemoth IWM, don’t earn a great Fit score. That has more to do with our benchmark for small-caps (which tends to lean toward larger stocks) than it does with any shortcoming of the Russell 2000 Index. Don’t let the score throw you off here: The Russell 2000 is an excellent index for capturing the small-cap market.

Choices abound among alternative strategies as well. Most of them don’t score favorably in Fit because they don’t aim to provide the market return or provide vanilla exposure. But low Fit scores don’t mean these funds don’t provide valuable exposure. WisdomTree’s Small-Cap Dividend Fund (DES) is a diversified and small-leaning fund that weights its holdings according to dividend. DES’ higher cash flows, coupled with the capital appreciation potential of small-caps, sounds appealing, but be sure you’re comfortable with its exposure tilts, and know also that some dividend strategies have lagged in total return over the past year.

Also popular are so-called core funds, which hold only those stocks that fall in the middle of the style spectrum between growth and value. The iShares Morningstar Small Core (JKJ), the PowerShares Fundamental Pure Small Core (PXSC) and the First Trust Small Cap Core AlphaDex (FYX) all offer some flavor of that methodology.

Equal-weighted methodologies have gained less traction here than in other ETF segments. GURX equal-weights its copycat holdings while EWRS equal weights by sectors and then by stocks within the sector.

IESM is the lone actively managed fund in the segment. So far performance has lagged as the fund reaches deep into the microcap space.

 (Insight updated 06/22/17)

All Funds (41)

96
95.757481
94
94.335634
93
93.22421
93
93.080913
92
92.311342
92
92.307973
92
92.125721
92
92.072292
90
90.299608
90
90.260846
89
89.17949
89
88.534655
88
88.426633
88
87.996914
87
86.712167
83
82.808791
80
79.85872
79
79.355656
79
79.261716
75
75.345821
75
75.071087
71
70.75943
68
68.228236
66
66.107177
61
60.690424
48
48.261759
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
68
67.528426
78
78.062121909754
72
71.940939152313

ETF.com Grade as 06/15/17

Equity: U.S. - Small Cap