##  [# Small-Cap ETF Definition](/etf-education-center/etf-glossary/small-cap-etf) 

 

# Small-Cap ETF Definition

 

 

Learn the definition of small-cap etf and other ETF terminology from the etf.com glossary.



 

 

 

 

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[By ETF Glossary](/authors/etf-glossary)

 Jan 16, 2024

 Edited by: ETF.com Staff

 

 

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## Learn more about Small-Cap ETF

A Small-Cap ETF specializes in investing in stocks of small-capitalization companies, typically with market caps between $250 million and $2 billion in market cap. These ETFs cater to investors seeking exposure to the potential growth of smaller, less-established firms. While small-cap stocks may exhibit higher volatility, Small-Cap ETFs offer diversification benefits and the opportunity for investors to participate in the higher-risk, higher-reward segment of the equity market. By providing a focused and targeted investment strategy, Small-Cap ETFs contribute to portfolio diversification, allowing investors to tailor their risk exposure based on their risk tolerance and investment objectives within the context of the broader market.

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 [ ETF Glossary ](/authors/etf-glossary) 

 

 

  ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock…   [View Bio](/authors/etf-glossary)

 



 

 


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