{"id":256218,"date":"2021-12-07T21:23:19","date_gmt":"2021-12-08T02:23:19","guid":{"rendered":"https:\/\/stockchase.com\/discover\/?p=256218"},"modified":"2021-12-07T21:23:19","modified_gmt":"2021-12-08T02:23:19","slug":"3-best-small-cap-etfs","status":"publish","type":"post","link":"https:\/\/stockchase.com\/discover\/3-best-small-cap-etfs\/","title":{"rendered":"3 Best Small Cap ETFs"},"content":{"rendered":"

As central banks in Canada and the U.S. prepare to taper and raise interest rates, high-growth stocks, namely tech, continue to see pressure. Ongoing supply shortages (\u201cconstraints\u201d is the fancy word) won’t help as they fuel inflation. Where to put your money? Small cap ETFs.<\/p>\n

Small caps. In 2020, particularly the last quarter, small-caps gained 20% while the S&P rose 16.3%. This year, small-caps have been more sideways as labour and supply shortages have disproportionately hit these companies. However, there are reasons to consider investing part of your portfolio in smalls for 2022. Small-caps historically underperform when investors expect markets to outperform. Q4 2020 is a perfect example when the Russell 2000 soared nearly 29% while the S&P climbed only 9.46%. Smalls are also more insulated from international headlines compared to the large, multinational companies.<\/p>\n

So, which small-cap stock? A safe short-cut would be to buy a small cap ETF, based on region. Let’s start at home.<\/p>\n

\"Canada<\/p>\n

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