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iShares S&P/TSX SmallCap Index ETF (XCS)
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iShares Russell 2000 ETF (IWM)
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iShares Core S&P Small-Cap ETF (IJR)
Q: Dear 5i team.
Can you list US and Canadian small cap ETFs that are options currently, and which you prefer given the outlook over the next few mths?
Many thanks for your help.
Can you list US and Canadian small cap ETFs that are options currently, and which you prefer given the outlook over the next few mths?
Many thanks for your help.
5i Research Answer:
For the US small-cap space, there is the iShares Russell 2000 ETF, IWM, ($49.0B AUM) and the iShares Core S&P Small-Cap ETF, IJR, ($64.8B AUM). IJR has a smaller set of holdings and its underlying companies are generally higher quality and more profitable than those in the IWM ETF. For this reason, we prefer IJR for US small-cap exposure.
In Canada, there is the iShares S&P/TSX Small-Cap ETF, XCS, which has $116.4M in AUM. It has ~250 holdings and since inception, it has returned 1.5% annually.
Overall, we would prefer IJR today.