7 Best Small Cap ETFs to Boost Portfolio Growth in 2024
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3 ماه پیش
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Small-cap stocks have delivered greater
Small-cap stocks have delivered greater returns than large-cap stocks historically. In this video we'll review some of the best small cap ETFs to capture that risk premium.
// TIMESTAMPS:
00:00 - Intro
00:14 - Why Small Cap Stocks?
01:11 - VB – Vanguard Small-Cap ETF
01:29 - ISCB – iShares Morningstar Small-Cap ETF
01:56 - IJR – iShares Core S&P Small-Cap ETF
02:27 - VIOO – Vanguard S&P Small-Cap 600 ETF
02:51 - SPSM – SPDR Portfolio S&P 600 Small Cap ETF
03:12 - SCHA – Schwab U.S. Small-Cap ETF
03:41 - VSS – Vanguard FTSE All-World ex-US Small-Cap ETF
04:05 - My Choice
04:13 - Small Cap Value
04:31 - Outro
// SUMMARY:
So first let's briefly talk about why we'd be interested in small cap stocks in the first place. Small-cap stocks account for roughly only 6% of a total market index fund by weight, so many investors like to overweight or tilt toward small-cap stocks due to their historical outperformance.
Small-cap stocks tend to have more room to move than large-caps, so they exhibit greater volatility. More importantly, small-caps are more risky than more stable, large-cap stocks. Because of this, investors demand higher returns for this greater risk, so small-cap stocks have historically paid a risk premium, referred to as the Size factor premium. As an added bonus, small caps aren't perfectly correlated with large caps, potentially offering a small diversification benefit.
Including small caps also took the famous 4% Rule (a safe withdrawal rate estimate for retirement) up to 4.5% historically.
So now that we know why small-caps may deliver market outperformance, let's explore the best small cap ETFs:
VB – Vanguard Small-Cap ETF
ISCB – iShares Morningstar Small-Cap ETF
IJR – iShares Core S&P Small-Cap ETF
VIOO – Vanguard S&P Small-Cap 600 ETF
SPSM – SPDR Portfolio S&P 600 Small Cap ETF
SCHA – Schwab U.S. Small-Cap ETF
VSS – Vanguard FTSE All-World ex-US Small-Cap ETF
Read the blog post here: https://www.optimizedportfolio.com/be...
#etfs #smallcapstocks #smallcapfunds
// INVEST
► M1 Finance: https://optimizedportfolio.com/go/m1
► My comprehensive review of M1 Finance: https://www.optimizedportfolio.com/m1...
► Get my dividend portfolio: https://www.optimizedportfolio.com/m1...
► Lazy Portfolios: https://www.optimizedportfolio.com/la...
► Beginners’ reference guide (updated regularly): https://www.optimizedportfolio.com/be...
► Webull (for stock traders; get 2 free stocks): https://act.webull.com/kol-us/share.h...
// SOCIAL
► Website: https://www.optimizedportfolio.com/
► Patreon: Patreon: optimizedportfolio
► Facebook: Facebook: optimizedportfolio
► Instagram: Instagram: optimizedportfolio
► Twitter: Twitter: OptimizedPort
► Support my channel by shopping on Amazon (free for you): https://amzn.to/2TLCgCc
I appreciate all the support!
Disclaimer: This is not financial advice, investing advice, or tax advice. The information presented is for informational, educational, and entertainment purposes only. Investment products discussed are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. I always attempt to ensure the accuracy of information presented but that accuracy cannot be guaranteed. Do your own due diligence. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future results. Opinions are my own and do not represent those of other parties mentioned. Read my lengthier disclaimer here: https://www.optimizedportfolio.com/te...
Disclosure: Some of the links above are referral links. At no additional cost to you, if you choose to make a purchase or sign up for a service after clicking through those links, I may receive a small commission. This allows me to continue producing high-quality content on this channel and pays for the occasional cup of coffee. I have first-hand experience with every product or service I recommend, and I recommend them because I genuinely believe they are useful.
// TIMESTAMPS:
00:00 - Intro
00:14 - Why Small Cap Stocks?
01:11 - VB – Vanguard Small-Cap ETF
01:29 - ISCB – iShares Morningstar Small-Cap ETF
01:56 - IJR – iShares Core S&P Small-Cap ETF
02:27 - VIOO – Vanguard S&P Small-Cap 600 ETF
02:51 - SPSM – SPDR Portfolio S&P 600 Small Cap ETF
03:12 - SCHA – Schwab U.S. Small-Cap ETF
03:41 - VSS – Vanguard FTSE All-World ex-US Small-Cap ETF
04:05 - My Choice
04:13 - Small Cap Value
04:31 - Outro
// SUMMARY:
So first let's briefly talk about why we'd be interested in small cap stocks in the first place. Small-cap stocks account for roughly only 6% of a total market index fund by weight, so many investors like to overweight or tilt toward small-cap stocks due to their historical outperformance.
Small-cap stocks tend to have more room to move than large-caps, so they exhibit greater volatility. More importantly, small-caps are more risky than more stable, large-cap stocks. Because of this, investors demand higher returns for this greater risk, so small-cap stocks have historically paid a risk premium, referred to as the Size factor premium. As an added bonus, small caps aren't perfectly correlated with large caps, potentially offering a small diversification benefit.
Including small caps also took the famous 4% Rule (a safe withdrawal rate estimate for retirement) up to 4.5% historically.
So now that we know why small-caps may deliver market outperformance, let's explore the best small cap ETFs:
VB – Vanguard Small-Cap ETF
ISCB – iShares Morningstar Small-Cap ETF
IJR – iShares Core S&P Small-Cap ETF
VIOO – Vanguard S&P Small-Cap 600 ETF
SPSM – SPDR Portfolio S&P 600 Small Cap ETF
SCHA – Schwab U.S. Small-Cap ETF
VSS – Vanguard FTSE All-World ex-US Small-Cap ETF
Read the blog post here: https://www.optimizedportfolio.com/be...
#etfs #smallcapstocks #smallcapfunds
// INVEST
► M1 Finance: https://optimizedportfolio.com/go/m1
► My comprehensive review of M1 Finance: https://www.optimizedportfolio.com/m1...
► Get my dividend portfolio: https://www.optimizedportfolio.com/m1...
► Lazy Portfolios: https://www.optimizedportfolio.com/la...
► Beginners’ reference guide (updated regularly): https://www.optimizedportfolio.com/be...
► Webull (for stock traders; get 2 free stocks): https://act.webull.com/kol-us/share.h...
// SOCIAL
► Website: https://www.optimizedportfolio.com/
► Patreon: Patreon: optimizedportfolio
► Facebook: Facebook: optimizedportfolio
► Instagram: Instagram: optimizedportfolio
► Twitter: Twitter: OptimizedPort
► Support my channel by shopping on Amazon (free for you): https://amzn.to/2TLCgCc
I appreciate all the support!
Disclaimer: This is not financial advice, investing advice, or tax advice. The information presented is for informational, educational, and entertainment purposes only. Investment products discussed are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. I always attempt to ensure the accuracy of information presented but that accuracy cannot be guaranteed. Do your own due diligence. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future results. Opinions are my own and do not represent those of other parties mentioned. Read my lengthier disclaimer here: https://www.optimizedportfolio.com/te...
Disclosure: Some of the links above are referral links. At no additional cost to you, if you choose to make a purchase or sign up for a service after clicking through those links, I may receive a small commission. This allows me to continue producing high-quality content on this channel and pays for the occasional cup of coffee. I have first-hand experience with every product or service I recommend, and I recommend them because I genuinely believe they are useful.
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در تاریخ 1403/03/20 منتشر شده
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