Investing in small-cap companies can be a great way to capitalize on the growth potential of up-and-coming businesses. But with so many small-cap ETFs to choose from, it can be tough to know which ones are right for you. That’s why we’ve put together this guide to the best small-cap ETFs for 2024.
What to Look for in a Small-Cap ETF
When choosing a small-cap ETF, there are a few key factors to keep in mind. First, consider the fund’s investment strategy. Some ETFs focus on growth stocks, while others invest in value stocks. Second, look at the fund’s expense ratio. This fee is charged annually and can eat into your returns over time. Finally, consider the fund’s track record. A fund with a long history of strong performance is more likely to continue to perform well in the future.
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The Best Small-Cap ETFs for 2024
Based on these factors, we’ve identified the following ETFs as the best small-cap ETFs for 2024:
- Vanguard Small-Cap Value ETF (VBR)
- iShares Core S&P Small-Cap ETF (IJR)
- Schwab Small-Cap ETF (SCHA)
Vanguard Small-Cap Value ETF (VBR)
The Vanguard Small-Cap Value ETF (VBR) is a great option for investors looking for a low-cost, diversified way to invest in small-cap value stocks. The fund has an expense ratio of just 0.07% and invests in a wide range of small-cap companies with strong value characteristics. VBR has a long history of strong performance, and it is one of the most popular small-cap ETFs on the market.
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iShares Core S&P Small-Cap ETF (IJR)
The iShares Core S&P Small-Cap ETF (IJR) is a great option for investors looking for a broad-based small-cap ETF with low expenses. The fund has an expense ratio of just 0.04% and tracks the S&P SmallCap 600 Index, which includes 600 of the smallest publicly traded companies in the United States. IJR has a long history of strong performance, and it is one of the most liquid small-cap ETFs on the market.
Schwab Small-Cap ETF (SCHA)
The Schwab Small-Cap ETF (SCHA) is a great option for investors looking for a small-cap ETF with a focus on growth stocks. The fund has an expense ratio of 0.14% and invests in a portfolio of small-cap companies with high growth potential. SCHA has a strong track record of performance, and it is a good choice for investors who are willing to take on more risk in exchange for the potential for higher returns.
Conclusion of Best Small Cap Etfs For 2024
Small-cap ETFs can be a great way to add diversification to your portfolio and potentially boost your returns. However, it is important to do your research before investing in any ETF. Consider the fund’s investment strategy, expense ratio, and track record before making a decision.
