 The
SPDR Small Cap Portfolio ETF (SPSM) is an exchange-traded fund (ETF)
that seeks to provide investors with exposure to small-capitalization
US equities. The ETF's objective is to track the performance of the
S&P Small Cap 600 Index, which is a widely recognized benchmark for
small-cap US stocks.
SPSM invests in a diversified portfolio of
small-cap US equities, with holdings primarily consisting of companies
with market capitalizations ranging from $250 million to $3 billion.
The ETF's holdings are selected based on factors such as liquidity,
earnings, and market capitalization, and are designed to provide
investors with exposure to a broad range of small-cap US stocks.
As of September 2021, the SPSM ETF has a net asset value (NAV) of
approximately $7.2 billion and holds a portfolio of over 600 US
small-cap stocks. The ETF's expense ratio is 0.05%, which is
relatively low compared to other ETFs.
SPSM has a track record
of providing investors with solid returns. Since its inception in
2017, the fund has provided investors with an annualized return of
around 14% (as of March 23, 2023), which is higher than the return of
the S&P 500 Index over the same period.
Overall, the SPDR Small
Cap Portfolio ETF (SPSM) could be a good investment option for
investors looking to invest in small-cap US equities. However, as with
any investment, it is important to conduct thorough research and
consider factors such as risk tolerance, investment objectives, and
fees before making a decision. Additionally, small-cap stocks can be
more volatile and have a higher degree of risk than large-cap stocks,
and as such, may not be suitable for all investors.
|
