U.S. Small Cap Blend ETF Rankings

by: MyPlanIQ

In this article, we start with our US Small Cap ETF rankings. We have already completed large and medium cap ETFs and have derived a performance graph for the ones we selected to potentially use in an ETF plan.

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In this article, we move on to small cap blend ETFs with the goal of providing the same ranking.

We rank and determine a cutoff based on trading volume for liquidity and lowtrading friction, then rank them based on their returns and assign a score.

We start with a fuller list of small cap blend ETFs:

Symbol

Name

IWM

iShares Russell 2000 Index

IJR

iShares S&P SmallCap 600 Index

VB

Vanguard Small Cap ETF

IWC

iShares Russell Microcap Index

SCHA

Schwab U.S. Small-Cap ETF

PRFZ

PowerShares FTSE RAFI US 1500

JKJ

iShares Morningstar Small Core

RWJ

RevenueShares Small Cap

PZI

PowerShares Zacks Micro Cap

FYX

First Trust Small Cap Core Alp

FDM

First Trust Dow Jones Select M

SLY

SPDR S&P 600 Small Cap ETF

WMCR

Wilshire Micro-Cap ETF

VTWO

Vanguard Russell 2000 Index ET

PJM

PowerShares Dynamic Small Cap

EWRS

Rydex Russell 2000 Equal Weigh

VIOO

Vanguard S&P Small-Cap 600 Ind

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We now apply trading volume data for us to be able to reduce the number of ETFs that we examine. We want to make sure we maximize liquidity and minimize trading friction. We are going to draw the line at around 200,000 although we will let the Schwab ETF squeak in just under the bar at around 190,000. This gives us five ETFs.

Ticker

Description

5 Yr AR%

3yr AR%

1yr AR%

VB

Vanguard Small Cap ETF

4.00%

5.40%

37.07%

IJR

iShares S&P SmallCap 600 Idx

2.83%

4.37%

35.61%

IWM

iShares Russell 2000 Index

2.26%

3.50%

29.63%

IWC

iShares Russell Microcap Index

-1.89%

0.74%

35.77%

SCHA

Schwab U.S. Small-Cap ETF

0.00%

0.00%

32.36%

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We will select the top three although VB and IJR seem to be head and shoulders above the rest of the bunch.

Ticker

Property

2004

2005

2006

2007

2008

2009

2010

2011

VB

Draw Down(%)

12.00

9.04

13.15

13.31

51.92

32.54

20.01

3.69

Return(%)

15.29

7.10

15.50

0.96

(37.61)

36.39

28.58

3.19

IJR

Draw Down(%)

11.07

10.94

13.98

14.44

48.42

33.34

19.29

3.58

Return(%)

21.43

6.57

14.17

(1.47)

(31.70)

24.45

27.33

2.13

IWM

Draw Down(%)

14.41

12.16

14.14

13.90

49.44

32.90

20.09

4.23

Return(%)

16.88

3.04

16.95

(2.73)

(34.48)

26.81

26.49

1.55

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So VB and IJR are selected for Mid Cap Blend ETFs.
Disclosure:
MyPlanIQ does not have any business relationship with thecompany or companies providing the ETFs mentioned in this article.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in IWO, IJR over the next 72 hours.