While we were distracted by the bigger names in the world of exchange traded funds (ETFs), some smaller ETFs you might not know about have been on fire for the last month.
With everyone’s minds preoccupied by the real estate sector, financial news, or the economy in general, most smaller ETFs are not getting the limelight they deserve. Well, here are five lesser-known ETFs that have produced large results in a short amount of time.
Warning: Understand that while the assets are low, the holdings within these funds are still liquid. There can be wide bid/ask spreads, so be sure to use limit orders if you buy funds with low assets.
Rydex S&P Smallcap 600 Pure Value (RZV): $14.8 million in assets; up 52.8% in the last month; expense ratio of 0.35%; 115 holdings. It tries to mirror the performance of the S&P SmallCap 600/Citigroup Pure Value Index. Small-caps could be leading the way out of the recession, since they’re more nimble and quick to react.