How Diversified Are Small-Cap ETFs?
August 21, 2015 at 15:49 PM EDT
Many ETF investors don’t think twice when buying large and heavily traded funds like the iShares Russell 2000 Index ETF ( IWM A- ) or the iShares S&P Small-Cap 600 Index ETF ( IJR A ). With billions of dollars in assets and hundreds of thousands of component equities, it’s easy to assume that liquidity and diversification risks have been mitigated – but this assumption may not be entirely true.
