Two ETFs That Solve The Small-Cap Profitability Problem
When it comes to all-encompassing small cap exposure, the iShares Russell 2000 ETF (IWM A-) has typically been the default choice. Therein lies the issue—while small-cap funds can provide tremendous growth opportunities, IWM’s market-cap-weighted methodology poses a profitability problem—one that’s easily solved by the VictoryShares Free Cash Flow Next Shares ETF (SFLO ) and the Invesco S&P SmallCap 600 QVM Multi-Factor ETF (QVMS B).
Source: https://etfdb.com/thematic-investing-content-hub/2-etfs-solving-small-cap-profitability-problem/
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