Micro Cap ETFs IWC and PZI

Yahoo Finance reran an article from Morningstar about the two new micro cap ETFs that is worth reading, writes Roger Nusbaum. At this point I don't know what I think about these funds. I mentioned, once before, that it is not clear to me if an ETF can capture the effect sought after but perhaps it can.

Typically, smaller companies outperform at the start of a bull market cycle but this has been a weird bull market because small cap has continued to outperform.

The way I can envision these being used is as a way to reduce the average cap size of a portfolio. At times this would be useful even if the ETFs look more like small cap than anything else.

Related:

• ETFs mentioned in this article include (clicking on a link pulls up articles for the ETF in question): IWC and PZI.
• The complete list of funds (and links to articles about them) covered by ETF Investor.

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