Want to Invest in Small-Cap Stocks? Check Out These Two Top ETFs
Because analyzing, picking, and investing in individual small-cap stocks is not for everyone, the State Street SPDR Portfolio S&P 600 Small Cap ETF and the Schwab U.S. Small-Cap ETF are two of the most elite, low-cost ETFs to invest in small-cap stocks. The number of their holdings, however, can make a big difference.
SCHA Total Return Level data by YCharts
SCHA tracks the Dow Jones U.S. Small-Cap Total Stock Market Index, which comprises over 1,700 stocks and offers the broadest possible exposure to small-cap stocks. SPSM, comparatively, tracks the S&P SmallCap 600 Index and is more concentrated, with nearly one-third as many holdings as SCHA.
SCHA may appeal to investors with a high appetite for risk because of its large portfolio. Over the past one and three years, this ETF has also outperformed SPSM.
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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lumentum and Moog. The Motley Fool has a disclosure policy.
Want to Invest in Small-Cap Stocks? Check Out These Two Top ETFs was originally published by The Motley Fool
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