International Small-Cap Equity

International small-cap equity funds and ETFs are funds that own stocks outside... International small-cap equity funds and ETFs are funds that own stocks outside of the U.S. on the smaller end in terms of market capitalization. They invest most of their assets in companies with market caps of $300 million to $3 billion. These funds may be geographically diversified, owning stocks in North America, Asia, Europe, Latin America, and Australasia. They may own stocks in both developed and emerging markets. They may be actively managed or follow an index and depending on the mandate, they may pursue various strategies to achieve returns. They can invest in a wide range of sectors. However, the most popular sectors are real estate, health care, information technology, and industrials. Some investors gravitate to small caps because of the potential for higher capital appreciation. Many mid cap
or large-cap stocks were once small caps, and saw their market value rise alongside soaring revenues, profits, and valuations. The small cap sector includes many companies that are in their infancy, and developing innovative services or products. However, compared to large cap companies, small cap companies are more riskier in nature, feature lower credit ratings and demonstrate relatively lower profitability as they deploy capital to grow their business. International small-cap equity funds and ETFs may be appropriate for more aggressive investors who seek returns that are higher than the market average. Among these funds, those with more diversified portfolios or focused on developed markets are usually a safer bet than those which concentrate their holdings in fewer stocks or emerging markets. Investors should also be wary of currency or geopolitical risks associated with some international markets. Last Updated: 04/23/2024 View more View less

International small-cap equity funds and ETFs are funds that own stocks outside of the U.S. on the smaller end in terms of market capitalization. They invest most of their assets in companies with... International small-cap equity funds and ETFs are funds that own stocks outside of the U.S. on the smaller end in terms of market capitalization. They invest most of their assets in companies with market caps of $300 million to $3 billion. These funds may be geographically diversified, owning stocks in North America, Asia, Europe, Latin America, and Australasia. They may own stocks in both developed and emerging markets. They may be actively managed or follow an index and depending on the mandate, they may pursue various strategies to achieve returns. They can invest in a wide range of sectors. However, the most popular sectors are real estate, health care, information technology, and industrials. Some investors gravitate to small caps because of the potential for higher capital appreciation. Many mid cap
or large-cap stocks were once small caps, and saw their market value rise alongside soaring revenues, profits, and valuations. The small cap sector includes many companies that are in their infancy, and developing innovative services or products. However, compared to large cap companies, small cap companies are more riskier in nature, feature lower credit ratings and demonstrate relatively lower profitability as they deploy capital to grow their business. International small-cap equity funds and ETFs may be appropriate for more aggressive investors who seek returns that are higher than the market average. Among these funds, those with more diversified portfolios or focused on developed markets are usually a safer bet than those which concentrate their holdings in fewer stocks or emerging markets. Investors should also be wary of currency or geopolitical risks associated with some international markets. Last Updated: 04/23/2024 View more View less