Which ASX Small-Cap ETFs Could Benefit As Rates Fall In 2024

ASX small-cap stocks trade at historically cheap valuations created by disdain for the sector as investors have chased technology stocks. This could change in 2024. ASX small-cap ETFs provide a way to invest in a portfolio of stocks with smaller market capitalisations.

Small-cap stocks are usually considered to be stocks with market capitalisations somewhere between $250 million and $1.0 billion.

The smaller end of the sharemarket was a difficult place to be in the past year as the weight of money left the sector for faster-growth technology stocks. Some fund managers are making bets that money will return to the sector if central bank interest rates fall as expected in 2024.

While this sector is often at the most volatile end of the sharemarket, it provides opportunities from time to time.

You could buy ASX small-caps stocks. If time and research is not your bag, an Exchange Traded Fund (ETF) that invests in smaller ASX businesses might be a quicker way.

To navigate the landscape of smaller, more speculative companies, JustStocks Advisor has identified 10 small-cap ETFs.

The advantage is that ETFs provide diversification to potentially smooth out the ups and downs of holding one small-cap stock.

ASX Small Cap Equity ETFs

Betashares Australian Small Companies Select Fund (ASX: SMLL)
Vanguard MSCI International Small Companies ETF (ASX: VISM)
VanEck MSCI International Small Companies Quality ETF (ASX: QSML)
iShares S&P/ASX Small Ordinaries ETF (ASX: ISO)
VanEck Small Companies Masters ETF (ASX: MVS)
iShares S&P Small Cap ETF (ASX: IJR)
SPDR® S&P/ASX Small Ordinaries ETF (ASX: SSO)
Smartshares US Small Cap ETF (NZSE: USS)
Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO)
VanEck Small Companies Masters ETF (ASX: MVS)


This content is for informational purposes only and should not be considered financial advice. Always consult with a qualified financial advisor before making any investment decisions.


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