Hitting Singles with Small Cap Value ETFs

As the broad market struggles to climb back from new lows, one group of stocks are doing just fine.

Small cap value stocks are up for the week, the month, QTD and 5% YTD while the rest of the market is down 15% on the year.

The Russell 2000 Value Index Fund (IWN) tracks the performance of the small-capitalization value sector of the U.S. equity market.

The ETF invests in companies with lower price-to-book ratios and lower forecasted growth within the Russell 2000 Index.

The small cap value stocks started to pull away from the rest of the market at the mid-July lows.

Part of the outperformance has been due to a 30% concentration in financials, a sector that started coming back in mid-July.

Other small cap value ETFs include the Benjamin Graham Small Cap Value ETN (BSC) which tracks the Benjamin Graham Small Cap Value Index – a portfolio of one hundred small-cap U.S. stocks that are selected according to the Benjamin Graham Methodology.

The iShares S&P SmallCap 600 Value ETF (IJS) owns companies with the strongest value characteristics within the S&P 600 Index, representing approximately 52% of the market capitalization of the S&P SmallCap 600 Index.