Are you looking to invest in small caps but not sure where to start? Well, look no further! At Extreme Investor Network, we have all the expert insights you need to make informed decisions in the world of finance.
Rob Harvey, the mastermind behind the Dimensional U.S. Small Cap ETF, believes that stock picking is essential to getting exposure to small caps. By actively managing his approach to buying the group, he aims to avoid underperforming small caps that could drag down the index. According to Harvey, removing these bottom-performing companies from your small cap universe can significantly boost returns.
The Russell 2000, which tracks small caps, has seen an increase of more than 12% so far this year, while the S&P 500 has risen about 23% in the same timeframe. The top holdings of the Dimensional U.S. Small Cap ETF include companies like Sprouts Farmers Market, Abercrombie & Fitch, and Fabrinet, with cash and cash equivalents accounting for 1.13% of the fund.
Ben Slavin, the global head of ETFs for BNY Mellon, notes that investors are increasingly seeking actively managed products to screen out small cap laggards. With investor sentiment shifting towards small caps, strategies like these are proving to be beneficial.
If you’re considering investing in small caps, it’s important to stay informed and make strategic choices. Stay tuned to Extreme Investor Network for more valuable insights and expert advice in the world of finance. Our unique approach to finance will guide you towards successful investments and financial growth.