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iShares Russell 2000 ETF (IWM)
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TD Q U.S. Small-Mid-Cap Equity ETF (TQSM)
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IJTiShares S&P Small-Cap 600 Growth ETF (IJT)
Q: i would like to increase my US equity exposure which largely consists of VUN and VIG currently. I don't have a specific small cap holding but feel the lagging performance might indicate it is a good time to buy TQSM. Would you advocate buying now or waiting until October?
Thanks.
Thanks.
5i Research Answer:
We think now is a good time to get exposure to the US small-cap sector. As a group, small-caps has been trading at the largest discount relative to the large-cap in decades. Also, declining interest rates going forward also benefit higher-risk sectors like small cap. TQSM is an actively managed ETF with a reasonable expense ratio of 0.45%, and we would be fine buying this for exposure. Also, other small-cap exposure such as IWM, IJT also look good.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in IJT.