By stock_street_wire

Three of the Top Small Cap Funds to Follow

No one has ever said investing was a walk in the park.

But you’d be surprised how many are making it near impossible to find success.

That’s because they try a million different things.  They get far too wrapped up with too many ideas. And they lose track of one of the best ways to make money today.

Unbelievably, an astonishing nine out of every 10 investors fail because:

  1. Many don’t have good training, or guidance
  2. They’re not aware of risk, thinking the stock market is a “get rich” scheme
  3. They don’t think long-term.  They want instant gratification.
  4. They blindly follow the crowd, becoming one of the sheep
  5. They fail to trade without emotion.
  6. They fail to trade with a property strategy or even diversify.
  7. They fail to learn from their mistakes.

In addition, one of the worst things many investors – especially new ones do – is they get caught up in what the press hounds would have them believe.

But that’s a great way to lose money.

We believe that if you really want to become a better investor then you need to be looking at where the smart money is heading.  You need to understand what is truly driving the markets and how you can take advantage of these moves as – and before – they hit the mainstream.

You must also look at stocks others are far too fearful to touch.

That’s how the long-term wealth can be found.

Small Cap Stocks offer Long-Term Opportunity 

Like most investors, one of your top goals has been to enjoy a financially secure retirement at whatever age you choose.  That being the case, it stands to reason that your retirement “nest egg” should ideally generate above-market returns, often with below-market risk.

I’ve found that small-cap stocks offer the best opportunities, especially the small cap ETFs.

The Top 3 Small Cap ETFs

Each offers diversification among some of the top small cap stocks in the market.  Instead of spending thousands of dollars diversifying, you can spend a fraction of the cost on an ETF that offers ample exposure.

iShares Russell 2000 ETF (IWM)

Between November 2016 and July 2019, the IWM rallied from a low of $115 to $156 mostly on the heels of President Trump’s tax plan. The IWM hold trades in Five Below (FIVE), Etsy Inc. (ETSY), Cree Inc. (CREE) and Entegris Inc. (ENTG) for example.

iShares S&P Small Cap 600 Growth ETF (IJT)

Between November 2016 and July 2019, the IJT ran from $125 to $183. The IJT holds trades in Trex Inc. (TREX), Neogen Corporation (NEOG), Inc. (STMP) and Green Dot Corporation (GDOT) for example.

iShares Core S&P Small Cap ETF (IJR)

Between November 2016 and July 2019, the IJR ETF ran from $57.50 to $78. The ETF has holdings in Ligand Pharmaceuticals (LGND), Neogen Corporation (NEOG), CACI International (CACI) and HealthEquity Inc. (HQY) for example.

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