Going Small Has Paid Off For Investors In Small Cap ETFs (IWM, IJR, VB)

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May 11, 2010 11:14am NYSE:DSC NYSE:IJR

“Small-cap ETFs led the stock market rally Monday and they’re leading the stock market higher in 2010. Here’s a look at the small-cap core funds available to investors. In the first half of 2010


, going small has paid off. Among the most prominent U.S. market indexes, the small cap focused Russell 2000 has been a clear winner, beating out large cap-centered indexes like the S&P 500 and the Dow. Given this outperformance, ETF investors may wish to follow suit with one of the many small-cap core ETFs available,” Don Dion Reports From The Street.

Dion Goes on to say, “With a number of different products from many prominent ETF providers available, picking the strongest small-cap core ETF can prove particularly challenging. One area to start with is liquidity because many small-cap ETFs suffer from low investor interest. For instance, the SPDR Dow Jones Small Cap ETF (NYSE:DSC), the iShares Morningstar Small Core Index Fund (NYSE:JKJ) and the PowerShares Zacks SmallCap Portfolio (NYSE:PZJ) all trade hands less than 30,000 times per day.”

“Meanwhile, the iShares Russell 2000 Index Fund (NYSE:IWM) , the iShares S&P 600 Index Fund (NYSE:IJR) and the Vanguard Small Cap ETF (NYSE:VB) have average volumes of 63 million, 1.5 million, and 590 thousand shares respectively. By narrowing the field to these three ETFs, it makes decision making a bit easier. Between these three funds, different strengths make them appealing to particular types of ETF investors,” Dion Reports.

See the full report on small cap ETFs: HERE

Here are some details we have put together for all the small cap ETFs mentioned in the article for your viewing:

SPDR Dow Jones Small Cap ETF (NYSE:DSC)

The investment seeks to replicate as closely as possible, before expenses, the performance of the Dow Jones U.S. Small Cap Total Stock Market index. The fund uses a passive management strategy designed to track the total return performance of the float-adjusted Small Cap index. It is nondiversified.

TOP 10 HOLDINGS ( 2.94% OF TOTAL ASSETS)  
Company Symbol % Assets
Human Genome Sciences, Inc. (HGSI) 0.39
Bucyrus International, Inc. (BUCY) 0.35
Sirius XM Radio Inc. (SIRI) 0.30
SL Green Realty Corporation Com (SLG) 0.30
Massey Energy Company Common St (MEE) 0.28
Green Mountain Coffee Roasters, (GMCR) 0.27
New M&I Corporation Common Stoc (MI) 0.27
Gannett Co., Inc. Common Stock (GCI) 0.26
Nalco Holding Company Common St (NLC) 0.26
Oshkosh Corporation Common Stoc (OSK) 0.26

Chart forSPDR Dow Jones Small Cap (DSC)

iShares Morningstar Small Core Index Fund (NYSE:JKJ)

Top Daily Holdings*
as of 5/10/2010
LIBERTY MEDIA CORP-CAP SER A 1.05%
UAL CORP 0.98%
JONES LANG LASALLE INC 0.98%
WILLIAMS-SONOMA INC 0.85%
DOMTAR CORP 0.85%
BRE PROPERTIES -CL A 0.79%
BE AEROSPACE INC 0.77%
GARDNER DENVER INC 0.76%
RAMBUS INC 0.76%
KENNAMETAL INC 0.74%
Total 8.53%
*Holdings are subject to change.

 Chart foriShares Morningstar Small Core Index (JKJ)

PowerShares Zacks SmallCap Portfolio (NYSE:PZJ)

The PowerShares Zacks Small Cap Portfolio (Fund) is based on the Zacks Small Cap Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to identify a group of small-cap stocks with the greatest potential to outperform passive benchmark small-cap indexes and other actively managed U.S. small cap strategies. The portfolio is rebalanced and reconstituted quarterly.

Fund Holdings subject to change  
Diamond Management & Technology Consultants Inc.   0.47%  
SenoRX Inc.   0.46%  
Dolan Media Co.   0.45%  
Schiff Nutrition International Inc. (Cl A)   0.45%  
PMA Capital Corp. (Cl A)   0.45%  
As of 5/10/2010      
 

 
Multi-Fineline Electronix Inc.   0.44%  
Arch Chemicals Inc.   0.44%  
Meadowbrook Insurance Group Inc.   0.44%  
Herley Industries Inc.   0.44%  
Raven Industries Inc.   0.44%  

Chart forPowerShares Zacks Small Cap (PZJ)

iShares Russell 2000 Index Fund (NYSE:IWM)

The iShares Russell 2000 Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the small capitalization sector of the U.S. equity market as represented by the Russell 2000 Index. The index represents the approximately 2,000 smallest companies in the Russell 3000 Index.

Top Daily Holdings*
as of 5/10/2010
HUMAN GENOME SCIENCES INC 0.44%
UAL CORP 0.31%
TUPPERWARE BRANDS CORP 0.29%
SKYWORKS SOLUTIONS INC 0.27%
DOMTAR CORP 0.27%
ARES CAPITAL CORP 0.26%
E*TRADE FINANCIAL CORP 0.26%
SOLERA HOLDINGS INC 0.26%
DEVELOPERS DIVERSIFIED RLTY 0.25%
EAST WEST BANCORP INC 0.25%
Total 2.85%
*Holdings are subject to change.

Chart foriShares Russell 2000 Index (IWM)

iShares S&P 600 Index Fund (NYSE:IJR)

The iShares S&P SmallCap 600 Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of U.S. small-cap stocks, as represented by the Standard & Poor’s SmallCap 600 Index.

Top Daily Holdings*
as of 5/10/2010
SKYWORKS SOLUTIONS INC 0.62%
ST MARY LAND&EXPLORATION 0.60%
EAST WEST BANCORP INC 0.58%
GARDNER DENVER INC 0.57%
TRACTOR SUPPLY COMPANY 0.54%
VARIAN SEMICONDUCTOR EQUIP 0.54%
OIL STATES INTERNATIONAL INC 0.51%
Live Nation Entertainment Inc 0.47%
SALIX PHARMACEUTICALS LTD 0.45%
ENTERTAINMENT PROPERTIES TR 0.45%
Total 5.34%
*Holdings are subject to change.

Chart foriShares S&P SmallCap 600 Index (IJR)

Vanguard Small Cap ETF (NYSE:VB)

The investment seeks to track the performance of a benchmark index that measures the investment return of small capitalization stocks. The fund employs a passive management investment approach designed to track the performance of the MSCI US Small Cap 1750 index, a broadly diversified index of the stocks of smaller U.S. companies. It attempts to replicate the target index by investing all, or substantially all, of assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.

TOP 10 HOLDINGS ( 2.71% OF TOTAL ASSETS)  
Company Symbol % Assets
Human Genome Sciences, Inc. (HGSI) 0.43
CMT Market Liquidity Rate N/A 0.35
Whiting Petroleum Corporation C (WLL) 0.28
Rovi Corporation (ROVI) 0.25
Oshkosh Corporation Common Stoc (OSK) 0.25
MSCI Inc Class A Common Stock (MXB) 0.25
Tupperware Brands Corporation C (TUP) 0.23
  (COMS) 0.23
Green Mountain Coffee Roasters, (GMCR) 0.22
Prison Rlty Tr Inc Common Stock (CXW) 0.22

 

Chart forVanguard Small Cap ETF (VB)


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