iShares S&P SmallCap 600 Growth ETF (NYSEARCA:IJT)
Another iShares choice, this ETF follows a growth stock subset of the S&P Small Cap 600 Index, holding roughly 360 stocks in its basket. This makes it pretty similar to VIOG, but IJT does have better volume, though it does cost a tad more in expenses.
In terms of holdings, IJT doesn’t put more than 1.6% in any one stock either, giving it a nice level of diversification. The sector breakdown is pretty similar to VIOG in this ETF, putting big weights in technology, consumer discretionary, health care, and financials.
For performance, IJT has added 29.05% in the trailing one year time frame, while in the past three months, the ETF has added 13.8%. While this has lagged both of the others on the list, it has still handily outperformed (NYSEARCA:IWM)—as well as large cap focused ETFs—for the time period in question (read Forget SPY, Focus on Mid and Small Cap ETFs).
Small caps have been flying under the radar as of late, crushing the broad markets in the process. This has largely been thanks to some positive trends in the space which have made investors tilt towards domestically-focused growth plays.
While all small cap ETFs have benefited from this trend, the real winners have been the higher beta choices. Investors may want to tap into these for the months ahead, as these still have some steam and positive trends at their back, suggesting that the aforementioned small cap growth ETFs could still have some room to run to close out 2013.
This article is brought to you courtesy of Eric Dutram.