Many investors like the allure of small-cap stocks. Buying the next Apple Inc. (Nasdaq: AAPL) or Amazon.com, Inc. (Nasdaq: AMZN) while they're still in their infancy is every investor’s dream.
But investing in small-cap stocks can be difficult. Many of them aren’t covered by the Wall Street investment firms so it’s hard to find research and opinions on them.
Investors who are seeking exposure to this part of the investment universe but don’t want the risk of owning individual stocks should consider ETFs. These include the iShares Micro-Cap ETF (NYSE: IWC) and the iShares Russell 2000 ETF (NYSE: IWM).
IWC tracks the Russell Microcap Index. It invests in companies that have a market cap between $50 million and $300 million.
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IWM tracks the Russell 2000 index. It invests in companies that have a market cap between $300 million and $2 billion.
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