Q: Please recommend ETFs to follow the Small Cap Index that you have the most confidence in; one in Canada and one in the USA.
5i Research Answer:
In Canada, there is only really one option being the XCS ETF. It had a nice run-up before this week when the whole market pulled back.
On the US side, we like IJR which provides exposure to the highest quality small cap names through mirroring the S&P 600 index. Similar to XCS, performance was good up until this week. We like the S&P 600 because there are much better names due to the more concentrated focus and requirement for profitability, compared to ETFs indexing the Russell 2000.