Four Micro-Cap ETFs Your Broker Forgot to Mention

When you've had your fill of large-cap ETFs and small-cap ETFs just aren't risky enough, don't fret because you have options. Small-cap is not the final frontier when it when it comes to market cap spectrum. There is the world of micro-cap stocks. This highly speculative universe is populated by stocks with market values from $50 million to $300 million. Simply put, stock picking with micro caps is a trying task. For every one winner an investor stumbles upon, he could easily have 10 losers. That means ETFs are a valuable tool for investors looking for micro-cap exposure. And why not? Many of these funds have been battered by the recent downturn and if the market rallies in earnest, these ETFs could easily outperform their large-cap peers. With that, here are four micro-cap ETFs your broker forgot to mention. Guggenheim Wilshire Micro-Cap ETF WMCR: The Guggenheim Wilshire Micro-Cap ETF just celebrated its fifth birthday, making the ETF one of the oldest in the micro-cap space. With an expense ratio of 0.5% and $37.2 million in assets under management, WMCR is home to 822 stocks with an average market cap of $179.2 million. Financials and healthcare combine for over 48% of the fund's sector weight. First Trust Dow Jones Select MicroCap Index Fund FDM: FDM stays a bit from the micro-cap theme with a median market value of $303 million among its 242 stocks. The ETF features an expense ratio of 0.6% and nearly $57 million in assets under management. Financials and industrials combine for 45% of FDM's sector allocation. iShares Russell MicroCap Index Fund IWC: The iShares Russell MicroCap Index Fund may focus on small stocks, but this fund is big by the standards of almost any ETF. IWC is home to over 1,400 stocks and $366.1 million in AUM. IWC is also heavy on financials and healthcare names as those two sectors combine for almost 44% of the ETF's weight. PowerShares Zacks MicroCap Portfolio PZI: PZI is another one that strays a bit from the proper definition of micro-cap as the ETF's 400 holdings have an average market value of $388 million. Like FDM, PZI is heavy on financials and industrials as those sectors account for over 43% of the ETF's weight.