Big Firms Battle in Small Stocks ETFs

Well, it didn't take long for competition to heat up in the micro-cap exchange-traded fund (ETF) arena. According to this two-page report from John Spence at MarketWatch, the passively managed iShares Russell Microcap Index Fund, launched just two days earlier this week has now been joined by the PowerShares Zacks Micro Cap Portfolio an exchange traded fund based on the Zacks Micro Cap Index. The Zacks Micro Cap Index is designed to identify companies from the universe of micro cap stocks with potentially superior risk-return profiles as determined by Zacks Investment Research. The Zacks Micro Cap Index is an equal-dollar weighted index comprised of 300 to 500 highest-ranking stocks selected quarterly from among the smallest 2,500 U.S. listed companies by market capitalization based on a proprietary multi-factor quantitative selection methodology.

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(May '04-Jun '05)