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

Jun. 29, 2005 12:06 AM ET
David Jackson profile picture
David Jackson

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.

This article was written by

David Jackson profile picture
I'm the founder and CEO of Seeking Alpha. Before Seeking Alpha, I worked as a technology research analyst for Morgan Stanley in New York. After I left, I wrote The ETF Investing Guide (which you can find by clicking on "Author's Picks" below), and some articles about individual stocks, and then started inviting other people to contribute to the website. Seeking Alpha is now the dominant crowdsourced platform for discussion of stocks and investing, and the only place with coverage of many mid and small cap stocks. I have a B.A from Oxford University and an MSc from The London School of Economics, and am married with five children.

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