In this piece, we will take a look at the five best small cap value ETFs. If you want to learn more about small cap stocks, then check out 12 Best Small-Cap Value ETFs.
5. Vanguard Small Cap Value Index Fund (NYSE:VBR)
5 Year Return: 5.23%
Vanguard Small Cap Value Index Fund (NYSE:VBR) is another ETF part of the Vanguard fund family. It is by far the largest ETF on our list so far, due to its massive net assets of $48.8 billion. The market price is also in line with the net asset value price, and year to date returns of the market price are one basis point higher than the NAV returns.
4. Invesco Russell 2000 Dynamic Multifactor ETF (BATS:OMFS)
5 Year Return: 5.50%
Invesco Russell 2000 Dynamic Multifactor ETF (BATS:OMFS) tracks stocks listed on the Russell 2000 stock index, which is one of the most popular small cap indexes in the industry. It is another small ETF with $353 million in net assets. Most of the fund’s holdings are concentrated in industrial, financial, and consumer cyclical market segments.
3. First Trust Small Cap Value AlphaDEX Fund (NASDAQ:FYT)
5 Year Return: 5.53%
First Trust Small Cap Value AlphaDEX Fund (NASDAQ:FYT) limits itself to investing in stocks part of the Nasdaq AlphaDEX index. This limits the companies in the exchange traded fund to those that are categorized by the Nasdaq as being value stocks through their cash flow to price, book value to price, and return on assets. It is also one of the smallest funds on this list since it has $170 million in net assets.
2. Invesco S&P SmallCap 600 Revenue ETF (NYSE:RWJ)
5 Year Return: 9.10%
Invesco S&P SmallCap 600 Revenue ETF (NYSE:RWJ) tracks the S&P SmallCap 600 Revenue-Weighted Index. It has assets of $1.37 billion and was set up in 2008. Its Net Asset Value is 37.50 which is 26 cents higher than the current market price. Like several other small cap value ETFs on our list, a large portion of Invesco S&P SmallCap 600 Revenue ETF (NYSE:RWJ)’s holdings are in consumer discretionary stocks. Alongside discretionary stocks, a large portion of the holdings are also invested in the energy and industrial sectors. The fund’s top three largest holdings are World Kinect Corporation (NYSE:WKC), United Natural Foods, Inc. (NYSE:UNFI), and The Andersons, Inc. (NASDAQ::ANDE).
1. Invesco S&P SmallCap Value with Momentum ETF (NYSE:XSVM)
5 Year Return: 9.74%
The Invesco S&P SmallCap Value with Momentum ETF (NYSE:XSVM) combines investing in small cap value stocks along with those with strong momentum indicators. It has $639 million in net assets and is part of the Invesco fund family. Its underlying index is made up of 120 companies that are also part of the S&P SmallCap 600 index. The average price to earnings ratio of the firms in the Invesco S&P SmallCap Value with Momentum ETF (NYSE:XSVM) ETF is 0.15, and its three largest holdings are Par Pacific Holdings, Inc. (NYSE:PARR), Vital Energy, Inc. (NYSE:VTLE), and Caleres, Inc. (NYSE:CAL).
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