Micro-Cap ETF Definition
Learn the definition of micro-cap ETF and other ETF terminology from the etf.com glossary.
Learn more about Micro-Cap ETF
A Micro-Cap ETF concentrates its investment focus on the stocks of companies characterized by very small market capitalizations, typically between $50 million and $300 million in market capitalization. By honing in on these nascent entities, the ETF provides investors with a unique avenue to tap into the potential growth associated with micro-cap stocks. While offering the allure of undiscovered gems and untapped potential, Micro-Cap ETFs are often associated with higher volatility and risk. Investors attracted to these funds appreciate the prospect of identifying emerging opportunities within the market, understanding that the dynamic nature of micro-cap stocks introduces both opportunities and challenges within the ETF's portfolio.
