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U.S. Small Cap Growth ETFs Continue Strong Gains

Small cap ETFs are generally made up of investments in companies with less than $1 billion in market capitalization. Small Cap Growth ETFs offer investors diversification throughout a wide range of industries and the potential for very high returns. At the same time, these ETFs tend to move up and down with the market and are subject to high levels of volatility.

US Small Cap Growth ETFs, represented by the iShares Russell 2000 Small Cap Growth Index ETF (NYSE:IWO), continued to outperform other styles of US Equity Assets with a one week return of 2.66% and a trend score of 13.93%. The small cap growth sector has also outperformed other US Equity Assets over a 52 week period, returning 24.31% in the past year. (See Russell Table)

US Equity Style Return


4/29/2011

Assets Class Symbols 04/27
Trend
Score
04/20
Trend
Score
Direction
Russell Smallcap Growth (IWO) 14.01% 13.06% ^
Russell Midcap Growth (IWP) 12.57% 11.91% ^
Russell Smallcap Index (IWM) 11.05% 9.92% ^
Russell Midcap Indedx (IWR) 10.9% 10.15% ^
Russell Midcap Value (IWS) 9.84% 9.03% ^
Russell Largecap Growth (IWF) 9.25% 8.24% ^
Russell Smallcap Value (IWN) 8.56% 7.26% ^
Russell Largecap Index (IWB) 8.52% 7.38% ^
Russell Largecap Value (IWD) 8.15% 6.96% ^

The trend score is defined as the average of 1,4,13,26 and 52 week total returns (including dividend reinvested).

U.S. Small Cap Growth

04/29/2011

Description Symbol 1 Yr 3 Yr 5 Yr Avg. Volume(K) 1 Yr Sharpe
Vanguard Small Cap Growth ETF (VBK) 27.33% 10.31% 6.52% 248 121.29%
iShares Russell 2000 Growth In (IWO) 26.68% 9.57% 4.89% 1,679 119.24%
iShares S&P SmallCap 600 Growth (IJT) 24.47% 8.6% 5.17% 187 121.82%

Among US Small Cap Growth ETFs, the Vanguard Small Cap Growth ETF (NYSE:VBK) has shown the most strength, returning 27.33% in the past year. Others, including the iShares Russell 2000 Growth Index ETF (NYSE:IWO) and the iShares S&P SmallCap 600 Growth ETF  have also provided investors with returns higher than 24%.

In recent periods, equities have experienced high levels of growth, leading many to speculate that a retraction is inevitable. If equity markets begin to lose value, US Small Cap Growth ETFs will certainly be impacted, as the performance of these ETFs correlate with general market conditions. Still, investors should expect strong returns from ETFs in this sector for the foreseeable future.

Disclosure: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.

Written By The Staff Of MyPlanIQ.com

LTI Systems, Inc. is the operator of MyPlanIQ.com and ValidFi.com. The founders of LTI Systems have extensive technology and business background in computer and semiconductor industries. They have been using the strategies provided by MyPlanIQ for their own personal retirement and taxable investments. The mission of LTI Systems is to make wealth management investment strategies that are used to be only accessible to institutions and high net worth individuals available to private investors with a fraction of flat cost and ease of use. The founders of LTI Systems, investors themselves, take pride in creating such a system and service for investors by taking the perspective from the investor side. They are using the system and the strategies for their own investment and align their interests with their customers.  

MyPlanIQ’s blog provides periodical articles to discuss issues related to retirement plans (401(k), 403(b) and IRAs), deferred compensation plans (457), college savings plans (529), taxable brokerage investment accounts, variable annuities and universal life insurance plans. It also covers investment strategies, specifically strategic and tactical asset allocation and investment products such as ETFs and mutual funds. In addition, it syndicates daily articles that are related to retirement planning, personal finance, investment strategies, annuities, insurance, college savings and market/economic outlooks. It provides a comment and discussion community for readers.


NYSE:IWB, NYSE:IWD, NYSE:IWF, NYSE:IWM, NYSE:IWN, NYSE:IWO, NYSE:IWP, NYSE:IWR, NYSE:IWS


 

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