Comments on the Barclay's Micro Cap ETF (IWC) and PowerShares Micro Cap ETF (PZI)

Barclay’s launched the first Micro Cap ETF today (IWC) based on an index representing the bottom 3% of the US stock market by market capitalization, writes David Fry, founder and publisher of The ETF Digest. I don’t currently have any data on this index although I’m sure one will be published soon to ascertain its trending and performance characteristics.

In the meantime, I’ve been studying the new ETF launched today by PowerShares, the Zacks Micro-Cap ETF (Symbol, PZI). I’ve been studying the historical data of the Zacks’ index and believe that it has potential to succeed since the index has performed well (23.5% annual returns over past 5 years) and the methodology, despite high fees (.70%) and portfolio turnover make it less ETF-like. The more exotic the ETF strategy with higher potential returns, the higher the fee. This is as it should be.

Comments

[g.pincheot:]

What we really want to know is - is there a China microcap ETF?

2008 May 22 03:37 PM

[David Jackson:]

Iminsky, yes there is:
Claymore/AlphaShares China Small Cap Index ETF (HAO)

You can find a list of all the China ETFs here:
seekingalpha.com/artic...

2008 May 22 03:51 PM