SLYG vs IJT: Which Small-Cap Growth ETF Wins?
Both funds track identical small-cap growth stocks with nearly matching returns, but one charges less while the other holds more assets.
iShares S&P Small-Cap 600 Growth ETF (IJT) and State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) are two small-cap growth exchange-traded funds (ETFs) that aim to provide similar exposure to this segment of the market. The primary distinctions between the two funds lie in their expense ratios and overall asset size. It is worth noting that small-cap growth stocks are often favored for their potential to generate substantial capital appreciation, although they generally exhibit higher volatility compared to large-cap stocks.
Both IJT and SLYG seek to invest in U.S. companies with smaller market capitalizations and robust growth metrics, such as increasing sales and earnings momentum. Despite sharing many similarities in their objectives and target assets, there are some nuanced differences in terms of costs, asset scale, and liquidity that could sway a small-cap investor's choice between the two funds.
A crucial metric to consider when comparing ETFs is the beta, which gauges the price volatility of an asset relative to the broader market, specifically the S&P 500 in this case. Beta is derived from monthly returns spanning the fund's history, up to a maximum of five years. The 1-year return signifies the total return accrued over the most recent 12-month period.
Lastly, the dividend yield represents the annual distribution of dividends yielded over the trailing 12-month timeframe.
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