5 Small Cap ETFs Up More Than 20% YTD

Though equity markets have seemingly taken a breather in recent months, the overall investment landscape so far in 2013 has been a positive one. And with investors slowly making their way back to riskier corners of the market, certain investment strategies have managed to deliver stellar returns. One such winning strategy has been investments in small capitalization equities [see Visual Guide: Major Index Returns By Year]. The investment thesis behind small-caps is a rather simple one: these companies typically exhibit favorable return profiles relative to their large cap counterparts because of their higher growth potentials. Investors should note, however that these firms come with higher levels of risk and volatility. But for those who believe the additional risks are worth it, we highlight the five top performing small-cap ETFs so far in 2013 (data as of 8/21/2013): 1. S&P SmallCap Health Care Portfolio , Up 33% This Invesco PowerShares offering is designed to offer exposure [...] Click here to read the original article on ETFdb.com. Related Posts: ETF Picks For 3 Of America’s Best Small Companies ETF Sector Rotation Strategies: Beyond The SPDRs ETFs & Sector Rotation: Large Cap, Small Cap, Or International? ETF Insider: Buy On The Dip Prospects August 12th Edition What ETF Investors Need To Know About 3-D Printing