Microcap ETFs soon, based on Dow Jones, MSCI and Russell micro-cap indexes

According to this article by John Spence, three index providers - MSCI,Russell and Dow Jones Indexes - have all recently introduced US microcap stock indexes. Barclays has already filed for a microcap ETF based on the MSCI index, and others are likely.

That's good news for ETF investors. Microcap stocks are a distinct asset class from small caps, and with these ETFs they'll be easy in include in portfolios. Transaction costs are particularly high for microcaps, so there's a stong argument in favor of using low-turnover index funds for that asset class.