Investing in microcap stocks, also called penny stocks, demands a higher degree of risk tolerance than investing in small-cap stocks because risk increases with lower 澳洲幸运5开奖号码历史查询:market capitalization. One reason for this higher risk is the thin trading volume for 澳洲幸运5开奖号码历史查询:microcap stocks, which can make it difficult to sell shares at the desired price within a reasonable time. Investors interested in microcap companies might choose to look at the largest microcap 澳洲幸运5开奖号码历史查询:exchange-traded funds (ETFs).

As a result, price fluctuations or 澳洲幸运5开奖号码历史查询:volatility increases with lower market capitalization. Microcap ETFs invest in stocks that typically have less than $300 million in value, compared to low-volatility 澳洲幸运5开奖号码历史查询:large-cap stocks with market capitalizati🦩ons in excess of $10 🎃billion.

However, please be aware that ETFs listed as microcaps don't usually contain 100% microcap or 澳洲幸运5开奖号码历史查询:penny stock companies. Instead, they also include a mix of small-cap companies (over 600 million in value). Below, we'll look at three microcap exchange-traded funds (ETFs) based on 澳洲幸运5开奖号码历史查询:assets under management (AUM) that also have a healthy mix of stocks within the various 💎sectors.

1. iShares Microcap ETF (IWC)

The iShares Micro-Cap ETF (IWC)—issued by Blackrock Inc.—is one of the largest microcap ETFs. The fund has more than $1.2 billion in total net assets as of Dec. 16, 2021. The IWC ETF tracks the performance of the 澳洲幸运5开奖号码历史查询:Russell Microcap Index 🥂by using a market capitalization weight♛ing methodology.

The ETF has 1,749 stock holdings, which are broken down or weighted based on the following sectors:

• Finance: 22.03%
• Health Technology: 25.45%
• Industrials: 11.43%
• Consumer Discretionary: 11.46%
• Information Technology: 9.89%
• Energy: 6.03%
• Real Estate: 4.16%
• Materials: 3.68%
• Communications: 2.96%
• Consumer Staples: 2.03%
• Utilities: .58%

The inception date of the IWC was Aug. 12, 2005, and has a one-year return of 60.63%, a three-year return of 12.02%, and a five-year return of 14.28% as of Sept. 30, 2021.

The ETF has an average daily trading volume of approximately 64,300 shares, which provides reasonable liquidity. IWC's 澳洲幸运5开奖号码历史查询:expense ratio is 0.60%, versus the average ETF expense ratio is 0.54%.

2. First Trust Dow 👍Joneᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚs Select MicroCap Index Fund (FDM)

The First Trust Dow Jones Select MicroCap Index Fund (FDM)—managed by First Trust Advisors—is a microcap ETF that tracks the performance of🌄 the Dow Jones Select MicroCap Index.

The rules of the Dow Jones Select MicroCap Index assign component weights according to market capitalization, trading volume, and the following financial indicators: trailing 澳洲幸运5开奖号码历史查询:price-to-earnings (P/E) ratio, trailing 澳洲幸运5开奖号码历史查询:price/sales ratio, per-share profit change for the previous quarter, 澳洲幸运5开奖号码历史查询:operating profit margin, and six-month total return.

The fund has more than $172 million in total net assets as of Dec. 17, 2021. The ETF has 208 stock holdings, which are broken down or weighted based on the following sectors:

• Financials: 34.95%
• Industrials: 14.89%
• Consumer Discretionary: 14.15%
• Information Technology: 8.91%
• Healthcare: 7.90%
• Real Estate: 6.33%
• Materials: 4.93%
• Consumer Staples: 4.22%
• Energy: 2.39%
  
• Communications: .69%
• Utilities: .64%
  

The inception date of the FDM was Sept. 27, 2005, and has a one-year return of 37.58%, a three-year return of 11.80%, and a five-year return of 9.67% as of Nov. 30, 2021.

The ETF has an average daily trading volume of approximately 7,184 shares. The FDM's expense ratio is 0.60%, versus the average ETF expense ratio is 0.54%.

3. Invesco DWA SmallCap Momentum ETF (DWAS)

Invesco's DWA SmallCap Momentum ETF (DWAS) tracks the Dorsey Wright SmallCap Technical Leaders Index, which invests in a blend of small-cap and microcap equities. Companies are also chosen for their relative strength in stock price momentum.

The fund has more than $520 million in total net assets as of Dec. 17, 2021. The ETF has 202 stock holdings, which are broken down or weighted based on the following sectors:

• Consumer Discretionary: 16.24%
• Healthcare: 15.95%
• Energy: 15.93%
• Industrials: 13.77%
• Information Technology: 13.18%
• Financials: 12.72%
• Materials: 5.42%
  
• Real Estate: 3.18%
  
• Communications: 2.47%
• Utilities: .76%
• Consumer Staples: .32%
  

The inception date of the DWAS was July 19, 2012, and has a one-year return of 22.03%, a three-year return of 14.22%, and a five-year return of 12.14% as of Nov. 30, 2021.

The ETF has an average daily trading volume of approximately 72,000 shares. The DWAC's expense ratio is 0.60%, versus the average ETF expense ratio is 0.32%.