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We are working our way through the US equity ETFs, ranking each sub-class to derive a set of top performing ETFs that we will then use to build a plan of ETFs and measure the performance.

We now apply trading volume data for us to be able to reduce the number of ETFs that we examine. As with the other ETFs, we apply a minimum trading volume to maximize liquidity and minimize trading friction. In this case, there is a cliff around 150,000 and above, and then it drops down to around 50,000.

We are then left with three alternatives (click to enlarge images):

Symbol

Name

5 Yr AR%

3yr AR%

1yr AR%

VBR

Vanguard Small Cap Value ETF

2.52%

3.48%

31.95%

IJS

iShares S&P SmallCap 600 Value

2.00%

3.35%

32.56%

IWN

iShares Russell 2000 Value Ind

1.61%

3.65%

32.80%

All three are relatively close although VBR is the winner and IJS is the backup.

Ticker

Property

2004

2005

2006

2007

2008

2009

2010

2011

VBR

Draw Down(%)

10.81

9.39

10.01

17.11

49.44

36.80

20.76

3.23

Return(%)

20.84

6.18

19.55

(7.31)

(34.34)

30.94

25.28

3.72

IJS

Draw Down(%)

9.53

10.55

13.80

17.49

48.16

35.01

21.89

3.45

Return(%)

21.13

4.89

17.94

(6.16)

(29.85)

21.28

25.20

1.66

IWN

Draw Down(%)

11.37

10.52

12.02

19.56

48.89

36.94

22.00

3.70

Return(%)

21.50

4.56

21.40

(11.94)

(29.54)

21.62

24.78

2.90

We can now see the small cap ETFs of the ones we have picked.

We can see that growth ETFs lead the way followed by blend and then value.

Having now completed the US equity ETFs, in the next article we will put them all together into a plan and see how they perform.

Source: Small Cap Value ETFs Round Off U.S. Equity Review