13 Best Small Cap Value ETFs to Maximize Portfolio Growth in 2024

Small cap value stocks have outperformed every other segment of the market historically. Here we’ll review the 13 best small cap value ETFs. Stick around 'til the end when I give my 3 specific picks for U.S., ex-US Developed Markets, and Emerging Markets small cap value stocks respectively.

// TIMESTAMPS:

00:00 - Intro - Why Small Cap Value Stocks?
01:31 - IJS
01:52 - SLYV
02:15 - VIOV
02:45 - AVUV
03:56 - DFSV
04:22 - IWN
05:18 - VTWV
05:33 - VBR
06:08 - ISCV
06:30 - DLS
07:28 - AVDV
08:02 - DGS
08:37 - AVES
09:20 - Conclusion & Outro

// SUMMARY:

So why Small Cap Value stocks?

Small-cap value stocks have beaten every other style and cap size of stocks historically due to what we think are independent sources of risk. These are known as the Size premium and the Value premium, two of the Fama-French risk factor premia that explain the differences in returns between diversified portfolios.

Here are some more impressive stats illustrating the glamour of small value: From 1928 through 2016, the S&P 500 index had a CAGR of 9.7%, while small-cap value stocks delivered 13.5%. Looking at 40-year periods since 1928, the average return of the S&P 500 was 10.9%, compared to 16.2% for small-cap value stocks.

Unfortunately the Size and Value factors have suffered in recent years, lagging the market. I don’t employ or advise market timing, but AQR maintains that Value is still basically the cheapest it’s ever been right now, suggesting that now may be the worst time to give up on the factor, and that it’s due for a comeback. 2021 and 2022 were actually great years for small value, relatively speaking, so that comeback may indeed be happening. Fingers crossed.

This video discusses these 13 small cap value ETFs:
IJS – iShares S&P SmallCap 600 Value ETF
SLYV – SPDR S&P 600 Small Cap Value ETF
VIOV – Vanguard S&P Small-Cap 600 Value ETF
AVUV – Avantis U.S. Small Cap Value ETF
DFSV – Dimensional US Small Cap Value ETF
IWN – iShares Russell 2000 Value ETF
VTWV – Vanguard Russell 2000 Value ETF
VBR – Vanguard Small-Cap Value ETF
ISCV – iShares Morningstar Small-Cap Value ETF
DLS – WisdomTree International SmallCap Dividend Fund
AVDV – Avantis International Small Cap Value ETF
DGS – WisdomTree Emerging Markets SmallCap Dividend Fund
AVES – Avantis Emerging Markets Value ETF

Read the blog post here: https://www.optimizedportfolio.com/be...

#smallcapvalue #smallcapstocks #smallcapfunds

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