6 Small-Cap ETFs That Have Surged To No.1 Rank In Summer

All these funds have deep focus on growth securities, which allow investors to earn more returns. Growth investing is basically a momentum play, which makes it a great strategy in a trending market (i.e. a market characterized by a prolonged uptrend). Stocks in the growth ETF portfolio harness their momentum in earnings to create a positive bias in the market, resulting in rocketing share prices. As such, growth funds tend to outperform during an uptrend.

Below we have highlighted six such ETFs that have seen their Rank surging to the top hierarchy from #3 (Hold) and could thus make great summer picks. These funds have gained at least 4% in a month.

iShares Russell 2000 Growth ETF (IWO - Free Report)

This is one of the popular and liquid ETFs in the small-cap space with AUM of $11.2 billion and average trading volume of 576,000 shares a day. The fund provides exposure to a broad basket of 1,224 stocks by tracking the Russell 2000 Growth Index. It is well spread out across components as none of these holds more than 0.5% of assets. Sector-wise, health care takes the top spot at 26.8% while information technology, industrials and consumer discretionary round off the next three spots with a double-digit allocation. The fund charges 24 bps in annual fees from investors.

Vanguard Small-Cap Growth ETF (VBK - Free Report)

This ETF tracks the CRSP US Small Cap Growth Index, holding 675 securities in its basket. The fund is widely diversified across a number of sectors and securities. Industrials, financials, technology, healthcare, and consumer services make up for double-digit allocation each and none of the securities holds more than 0.8% of total assets in the basket. The product has amassed $8.5 billion in its asset base while trades in solid volume of around 145,000 shares. VBK charges 7 bps in fees per year.  

iShares S&P Small-Cap 600 Growth ETF (IJT - Free Report)

This fund follows the S&P SmallCap 600 Growth Index and holds a well-diversified portfolio of 332 stocks, with each security making up for no more than 1.1% of assets. Further, it is well spread across various sectors with industrials, healthcare, information technology, financials, and consumer discretionary accounting for a double-digit allocation each. IJT has AUM of $6.3 billion and average trading volume of 131,000 shares. Expense ratio comes in at 0.25%. The fund has gained 4% in a month.

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