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Micro Cap Index Funds: Do the exist?

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  • Micro Cap Index Funds: Do the exist?

    Are there micro cap funds that track an index? If so, which funds and which index to they track?

  • #2
    IWC and BRSIX are your two main choices. Both have pluses and minuses. It is possible that it isn't actually possible to capture the CRSP 10 returns with any indexing strategy, which is unfortunate.
    Helping those who wear the white coat get a fair shake on Wall Street since 2011


    • #3
      I'm not sure it would qualify as a passive index but it might be worth a look:

      AllianzGI Ultra Micro Cap Institutional (AUMIX). The manager currently defines ultra micro-cap companies as those with market capitalizations less than two times the weighted average of the Russell Microcap Growth Index, i.e., capitalizations less than $1.02 billion

      There are a few active management funds.  Or you could do crowd sourced investing or angel investing.

      Lastly, if you can go a little bigger you can often get the same or better results with:

      Vanguard small-cap ETF, VB




      • #4
        AUMIX has a 1.97% ER.

        RZV is a small value passive ETF with an ER of 0.35%.  Market weight of ~600 million, on the border of small and micro, but on the extreme southwest end of the morningstar square, thus perfectly positioned to capture the putative SCV premium.  Anyone with experience in it?  I've never pulled the trigger on it, due to the bid/ask spreads, and because it only has 149 holdings.


        • #5
          Anybody have thoughts on WMCR?