Shining The Transparency Light On ETFs

Taking advantage of one of the greatest benefits of ETFs—transparency—can lead to some surprising discoveries.

Taking advantage of one of the greatest benefits of ETFs—transparency—can lead to some surprising discoveries. Case in point: the world of small-cap ETFs.

We’ve discovered that while a number of ETFs call themselves “small-caps,” they really don’t have that much small-cap exposure. And that matters, because a fund that isn’t exactly small-cap is going to deliver different risks and different returns than a pure small-cap strategy.

 

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