Micro Cap ETFs: Time To Think Small?

By: ETFdb
Although the economy remains weak in the U.S., it is arguably better here than in many other spots around the world. Inflationary concerns and extreme levels of volatility are rocking emerging markets while many developed markets are facing debt crises on a seemingly daily basis. Yet, investors still remain skeptical of the American stock market as a whole, preferring to keep their assets in low risk options instead. Unsurprisingly, this fear of risk has led many into large cap equities as a haven from the storm, leaving many investors to forget about smaller, and often times more volatile, market cap levels. While this may be fine in a high risk environment, investors could miss out on some of the biggest gains should the economy stabilize and push broad markets higher. In fact, after the market bottomed in early 2009, small and mid cap securities greatly outperformed their larger counterparts, outgaining them by a wide margin [...] Click here to read the original article on ETFdb.com. Related Posts: Claymore Launches New Micro Cap ETF (WMCR) Definitive Guide to Micro Cap ETFs: Micro Cap ETF Investing 101 Best ETF Performers Of 2010: Winners For Every ETFdb Category August ETF Roundup: Launches, Filings, and Closures Beyond IWM: Five Intriguing Small Cap ETFs
Although the economy remains weak in the U.S., it is arguably better here than in many other spots around the world. Inflationary concerns and extreme levels of volatility are rocking emerging markets while many developed markets are facing debt crises on a seemingly daily basis. Yet, investors still remain skeptical of the American stock market as a whole, preferring to keep their assets in low risk options instead. Unsurprisingly, this fear of risk has led many into large cap equities as a haven from the storm, leaving many investors to forget about smaller, and often times more volatile, market cap levels. While this may be fine in a high risk environment, investors could miss out on some of the biggest gains should the economy stabilize and push broad markets higher. In fact, after the market bottomed in early 2009, small and mid cap securities greatly outperformed their larger counterparts, outgaining them by a wide margin [...]

Click here to read the original article on ETFdb.com.

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