Discover the Top-Ranked Small Cap ETFs that Could Supercharge Your Investment Portfolio

TRADING TIPS
The Top Small Brand ETFs for Your Investment Journey
By Marc Andre, Revised on November 17, 2022
Small-cap (short for “small market capitalization”) stocks, or shares in small companies, can offer greater profit potential than those of large, well-known companies. But knowing which small-cap stocks to invest in can be challenging.

One solution is to invest in a small-cap ETF (exchange-traded fund). This is like a basket of different small companies’ stocks, letting you spread out your investment.

We’ve picked out some of the best small-cap ETFs for you to consider. Just a note, though, this isn’t financial advice and there’s always a risk of losing money when you invest. If you have any questions about your financial situation, chat to a financial advisor.

How to Invest in ETFs
Platforms like Public.com, Webull, and Moomoo make it easy to invest in ETFs. It’s as straightforward as buying a single company’s stock. You can buy or sell anytime the stock market is open, so your money is always accessible.

Top Small Cap ETFs
Interested in adding small brands to your portfolio? Here are some small-cap ETFs to look at. All details are from VettaFi, up-to-date as of November 17, 2022.

Invesco S&P SmallCap 600 Revenue ETF (RWJ)
This ETF follows the S&P SmallCap 600 Revenue-Weighted Index, meaning companies are selected based on their revenue. Though its expense ratio (the cost of managing the fund) of 0.39% is a bit higher than some alternatives, RWJ has been outperforming other ETFs that we highlight here.

Invesco S&P SmallCap Value with Momentum ETF (XSVM)
XSVM uses the S&P SmallCap 600 Index which includes companies meeting specific financial health criteria. With a similar expense ratio to the RWJ, this ETF is another worthy candidate for your portfolio.

Invesco DWA SmallCap Momentum ETF (DWAS)
This ETF picks 200 companies from a list of 2,000 based on calculated momentum, and comes with a slightly higher expense ratio owing to this selection method.

Pacer US Small Cap Cash Cows 100 ETF (CALF)
The CALF ETF locates the 100 small companies with the greatest free cash flow (money left over after expenses and taxes). With an expense ratio of 0.59%, it has a strong growth potential.

Vanguard S&P Small-Cap 600 Growth ETF (VIOG)
This ETF aims at picking small-cap companies with the highest growth potential. It has a low expense ratio of 0.15% and includes over 300 different securities.

Vanguard Small Cap ETF (VB)
If simplicity is what you seek, consider VB. Reflecting the benchmark CRSP US Small Cap, this ETF has an extensive number of holdings and a meager expense ratio of 0.05%.

More investment options worth examining are Invesco S&P SmallCap Momentum ETF (XSMO), Vanguard Small Cap Value ETF (VBR), Vanguard Small Cap Growth ETF (VBK), and Schwab Fundamental US Small Co. Index ETF (FNDA).

Wrapping It Up
Small-cap stocks and ETFs aren’t a one-size-fits-all solution. They can be a bit of a dangerous game – you might make a lot, but you might lose a lot too. If you can stomach the potential for sudden dips, you might also ride the wave of significant growth.

Whatever you choose, don’t forget to do your research before investing!

Investment Platforms
Public, Moomoo, and Webull are amazing platforms offering commission-free trades of stocks, ETFs, options, and cryptocurrencies. They allow fractional shares purchases, provide beginner-friendly interfaces, advanced analytic tools, free real-time data, and a lively community of investors to connect with.

In sum, trading small-cap ETFs could be an exciting venture for you. Happy investing!