4 Small-Cap ETFs to BUY in 2022 - EASIEST WAY TO INVEST IN NEXT AMAZON

If you want to build a diversified, passive and low cost portfolio, then there is no way around #ETFs. They are one of the simplest and most convenient investment products for beginners and long-term investors.

#ETF stands for #ExchangeTradedFund and it makes more sense if you read it backwards: It’s a fund that is traded on a stock exchange. The first ETF, the S&P 500 Trust ETF, was launched in 1993 by State Street.

And since then, ETFs have become incredibly popular. Since 2003, the money invested in ETFs has gone up by 38x, reaching over 7 trillion dollars in 2020 - so there is plenty of choice for private investors.

#SmallCap ETFs, in particular, are amongst the most popular ETFs. A Small-Cap is a publicly traded company with a market capitalisation of around $300 million to $2 billion. This number can vary by datasource. #SmallCapInvestors are usually looking for up-and-coming young companies that are growing fast. Essentially, they are looking for the next Large-Cap stocks of the future.

There are a few reasons why investing in a #SmallCapETF can be a smart satellite investment in your core-satellite portfolio. One obvious advantage of Small-Caps is growth potential. Most Mega-Cap stocks that dominate the S&P 500 today started off as small businesses. Small-Cap investing gives you a chance to get into stocks early on and ride the wave to the top. Another advantage of #SmallCapInvesting is that it can give you a diversification booster! Most US and global ETFs focus on Large-Cap stocks. Therefore, investing in an additional ETF that only focuses on #SmallCaps can increase your diversification because you will have very little overlaps with your existing ETFs. In general, #SmallCapStocks are more cyclical and volatile. However, by investing in an ETF that holds thousands of #Small-Cap stocks, you can reduce your risk. Another advantage of Small-Cap investing is bull market gains! It’s true that Large-Cap stocks are more resilient in recession periods. Small-Cap stocks, however, usually outperform in bull markets.

Today, there are more than 100 #SmallCapETFs out there which makes picking the right one difficult for beginners. That’s why in this video, we will look at 4 of the most interesting and best ETF options. Enjoy!

⏰⏰ Timecodes ⏰⏰
0:00 Intro
1:03 Why Small-Cap Stocks?
2:10 ETF No 1 - IJR
4:25 ETF No 2 - VBK
5:46 ETF No 3 - ESML
7:25 ETF No 4 - SCZ
9:15 Final Thoughts

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DISCLAIMER: This video is for educational purposes only and merely cites my own personal opinion. In order to make the best financial decision that suits your own needs, you must conduct your own thorough research and seek the advice of a licensed financial advisor if necessary.

#IJR #VBK #ESML #SCZ

[btm]

this channel deserves more views! thanks for the infos!

[akin]

IJR for performance, VB for balance & volume, and SCHA for the lowest expense ratio.

[jeffreym]

Thanks to teaching the small cap 🧢 investment strategy! I hold US slice and dice iShares small cap growth (IWO) and value (IWN) ETFs. I am not proud of their expense ratios above 20 bps. I owned since 2003 in taxable.

[andneomatmj]

What you thing about reverse analisys: Who invested in Pfizer, Apple, Microsoft - percent by percent? :)