Small Cap Value ETFs

Most of these ETFs invest in stocks of companies that are deemed to have a small market capitalization size, generally between $300 million and $2 billion. The companies are also deemed to be below their intrinsic value, or the price at which the company should trade. The current stock market environment has been kind to small cap investors and we certainly think a small cap value approach lessens some of the risk investors tend to get with small cap names. Therefore, we see this category as being suited well for moderate investors, with the understanding small caps offer more volatility and competitive risk from their lower market capitalization position.