In this article, we will look at 5 small-cap ETFs to buy now. If you want to explore similar ETFs, you can also take a look at 10 Small-Cap ETFs to Buy Now.
5. iShares S&P Small-Cap 600 Value ETF (NYSE:IJS)
iShares S&P Small-Cap 600 Value ETF (NYSE:IJS) is an ETF that primarily invests in small-cap value stocks. The fund seeks to track the performance of the S&P SmallCap 600 Value Index, and uses a representative sampling technique. iShares S&P Small-Cap 600 Value ETF (NYSE:IJS) has 467 holdings and a top ten holdings concentration of 8.99%. As of July 5, the fund has $8.55 billion in assets under management, an expense ratio of 0.18%, and offers a yield of 1.47%.
Southwestern Energy (NYSE:SWN) is one of the top holdings of iShares S&P Small-Cap 600 Value ETF (NYSE:IJS). On June 15, Benchmark analyst Subash Chandra upgraded Southwestern Energy (NYSE:SWN) to Buy from Hold and gave the stock a $14 price target.
Investors are betting big on energy since the first quarter of 2022. Insider Monkey found 35 hedge funds long Southwestern Energy (NYSE:SWN) at the close of Q1 2022. The total stakes of these hedge funds came in at $516.68 million, up from $255.41 million in the preceding quarter with 24 positions. The hedge fund sentiment for the stock is positive.
In the first quarter of 2022, D E Shaw raised its stakes in Southwestern Energy (NYSE:SWN) by 127%, bringing them to $180.81 million. D E Shaw is the most prominent stakeholder in the company.
Here is what Greenlight Capital had to say about Southwestern Energy (NYSE:SWN) in its first-quarter 2022 investor letter:
“SWN is the second largest producer of natural gas in the U.S. The company is well-situated to satisfy growing domestic and export demand. Over the short, medium and long term, Europe now intends to reduce its reliance on Russian energy and increase its use of U.S. LNG. Based on its 2021 year-end reserves – which assumed a $3.60/MMBtu long-term natural gas price – SWN has a PV-104 value of $13.83 per share. By the end of the first quarter, the U.S. natural gas 5-year forward curve averaged $4.28/MMBtu, while international seaborne LNG was close to $20/MMBtu. Over the intermediate term, with the benefit of substantial global investment in infrastructure, we expect prices for U.S. and international natural gas to converge. We acquired our shares at an average price of $6.58. SWN shares ended the quarter at $7.17.”
4. SPDR S&P 600 Small Cap Value ETF (NYSE:SLYV)
SPDR S&P 600 Small Cap Value ETF (NYSE:SLYV) tracks the performance of the S&P SmallCap 600 Value Index and the S&P 500 Index using a relative sampling technique. The fund invests across a diverse range of sectors, with a preference for value stocks of small-cap companies. The major chunk of its portfolio is attributed to financials, real estate, industrials, and consumer cyclical segments. As of July 5, SPDR S&P 600 Small Cap Value ETF (NYSE:SLYV) has $3.86 billion worth of assets under management, has a dividend yield of 1.51%, and has an expense ratio of 0.15%.
Helmerich & Payne, Inc. (NYSE:HP) is ranked among the top holdings of SPDR S&P 600 Small Cap Value ETF (NYSE:SLYV). Helmerich & Payne, Inc. (NYSE:HP) operates in the oil & gas industry and offers well drilling and related services for exploration and production companies. On June 8, Susquehanna analyst Charles Minervino raised his price target on Helmerich & Payne, Inc. (NYSE:HP) to $62 from $55 and maintained a Positive rating on the shares.
At the close of Q1 2022, 28 hedge funds were long Helmerich & Payne, Inc. (NYSE:HP) with stakes worth $212.26 million. This is compared to 25 positions a quarter ago with stakes of $116.29 million. The hedge fund sentiment for the stock is positive.
As of March 31, Ken Fisher’s Fisher Asset Management is the most prominent shareholder in Helmerich & Payne, Inc. (NYSE:HP) owning over 1.15 million shares of the company. This amounts to a stake of $49.43 million.
3. Vanguard S&P Small-Cap 600 Value ETF (NYSE:VIOV)
Vanguard S&P Small-Cap 600 Value ETF (NYSE:VIOV) invests in public equity markets of the United States and seeks to track the performance of the S&P SmallCap 600 Value Index using a full replication technique. Vanguard S&P Small-Cap 600 Value ETF (NYSE:VIOV) has 465 holdings spread across financials, real estate, healthcare, energy, and consumer cyclical segments. The fund has a top 10 holdings concentration of 7.44%. As of July 5, Vanguard S&P Small-Cap 600 Value ETF (NYSE:VIOV) has $1.14 billion worth of assets under management, an expense ratio of 0.15%, and offers a yield of 1.52%.
CVB Financial Corp. (NASDAQ:CVBF) is a notable stock among the top holdings of Vanguard S&P Small-Cap 600 Value ETF (NYSE:VIOV). On June 15, CVB Financial Corp. (NASDAQ:CVBF) raised its quarterly cash dividend by 5.6% to $0.19 per share from $0.18 per share. The dividend is payable on July 15 to shareholders of record on June 30. As of July 5, CVB Financial Corp. (NASDAQ:CVBF) has a forward dividend yield of 3.02%.
Hedge funds are raising their stakes in CVB Financial Corp. (NASDAQ:CVBF). At the end of the first quarter of 2022, 10 hedge funds held stakes in the bank holding company worth $50.09 million. This is compared to 12 hedge funds in the preceding quarter with stakes worth $39.18 million.
In the first quarter of 2022, Schonfeld Strategic Advisors raised its stakes by 86% in CVB Financial Corp. (NASDAQ:CVBF), bringing them to $23.47 million, which makes it the top shareholder in the bank holding company.
2. WisdomTree SmallCap Dividend ETF (NYSE:DES)
WisdomTree SmallCap Dividend ETF (NYSE:DES) invests in small-cap growth and value stocks with a preference for dividend-paying companies. The fund seeks to track the performance of the WisdomTree U.S. SmallCap Dividend Index and uses a representative sampling technique. As of July 5, WisdomTree SmallCap Dividend ETF (NYSE:DES) has an expense ratio of 0.38% and offers a yield of 2.06%. The fund has 670 holdings and a top ten holdings concentration of 10.59%.
Utilities cover 10.90% of WisdomTree SmallCap Dividend ETF’s (NYSE:DES) portfolio. Spire Inc. (NYSE:SR) is a public utility holding company that provides natural gas services throughout the United States. Spire Inc. (NYSE:SR) is among the fund’s top holdings and represents 1.30% of its portfolio. As of May 25, Mizuho analyst Gabriel Moreen has a $77 price target and a Neutral rating on Spire Inc. (NYSE:SR).
The hedge fund sentiment for Spire Inc. (NYSE:SR) is positive. At the close of Q1 2022, 18 hedge funds held stakes in Spire Inc. (NYSE:SR) worth $120.24 million. This is compared to 10 positions in Q4 2021 with stakes of $15.14 million.
As of March 31, Millennium Management is the leading shareholder in Spire Inc. (NYSE:SR), owning over 0.55 million shares which amount to a stake of $39.95 million.
1. Invesco S&P SmallCap Low Volatility ETF (NYSE:XSLV)
Invesco S&P SmallCap Low Volatility ETF (NYSE:XSLV) invests in less volatile stocks of small-cap companies. The fund seeks to track the performance of the S&P SmallCap 600 Low Volatility Index and employs a full replication technique. As of July 5, Invesco S&P SmallCap Low Volatility ETF (NYSE:XSLV) is offering a yield of 2.94% and has an expense ratio of 0.25%. The fund has 121 holdings, the majority of which belong to real estate, financials, and technology segments, and has a top ten holdings concentration of 10.66%.
Agree Realty Corporation (NYSE:ADC) covers 1.07% of Invesco S&P SmallCap Low Volatility ETF’s (NYSE:XSLV) portfolio and is ranked among the fund’s top holdings. Analysts are bullish on Agree Realty Corporation (NYSE:ADC). On June 22, Credit Suisse analyst Tayo Okusanya initiated coverage of Agree Realty Corporation (NYSE:ADC) with a buy-side Outperform rating and a $78 price target. On June 30, Jefferies analyst Linda Tsai raised her price target on Agree Realty Corporation (NYSE:ADC) to $82 from $80 and reiterated a Buy rating on the shares.
At the end of Q1 2022, 21 hedge funds held stakes in Agree Realty Corporation (NYSE:ADC). The total value of these stakes amounted to $141.55 million. Of these, $50.50 million were of Millennium Management, the largest shareholder in the company.
You can also take a look at 10 Best ETFs for Long-Term and 10 High Yield Dividend ETFs to Buy Now.
