Equity: U.S. - Small Cap Value
With 14 ETFs and over $57.47B in combined AUM, the Equity: U.S. - Small Cap Value segment provides exposure to the U.S. space with a focus on Small Cap securities.
Year-to-date, the best-performing ETF in the segment is the Invesco S&P SmallCap Value with Momentum ETF (XSVM), with a total return of 42.57%. Meanwhile, the most popular ETF is the Vanguard Small-Cap Value ETF (VBR) with $24.40BB in assets under management.
Investors should take a look at the Vanguard Small-Cap Value ETF (VBR). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. VBR tracks the CRSP US Small Cap Value Index. The index selects from a list of stocks in the 85-99% range of market cap, based on five value factors. VBR has an expense ratio of 0.07% and tracks the CRSP US Small Value.
ETF.com Efficiency Insight
The average efficiency score in the Equity: U.S. - Small Cap Value segment is 89 out of 100, with the Vanguard Small-Cap Value ETF(VBR) obtaining the highest rating of 98 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.28% per year, with the iShares Morningstar Small Cap Value ETF (ISCV) having the lowest expense ratio, charging investors 0.06% yearly.
Investors should look for funds with tight tracking, such as the Vanguard Small-Cap Value ETF (VBR), with a 12-month median tracking difference of 0.05%.
ETF.com Tradability Insight
The average tradability score in the Equity: U.S. - Small Cap Value segment is 87 out of 100, with the iShares Russell 2000 Value ETF(IWN) obtaining the highest rating of 98 out of 100.
The iShares Russell 2000 Value ETF (IWN) is the undisputed segment leader when it comes to liquidity. The fund trades 198.15M in daily average volume. Investors should also find ample liquidity in the Vanguard Small-Cap Value ETF (VBR), with $60.57M in daily dollar volume.
Use limit orders to trade funds such as the PGIM QMA Strategic Alpha Small-Cap Value ETF(PQSV), due to their double-digit market spreads.
ETF.com Fit Insight
The MSCI USA Small Cap Value Index has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.
Investors trying to match a broad market exposure should pay attention to VBR. This fund obtains a high Fit score and investors should capture market-like returns.
Other funds diverge from the market, by nature of their investment mandates; for example, XSVM follows a Value strategy and obtains a low Fit score compared with our neutral benchmark.