5 Small-Cap ETFs to Buy Now

In this article, we will look at 5 small-cap ETFs to buy now. If you want to explore similar ETFs, you can also take a look at 10 Small-Cap ETFs to Buy Now.

5. iShares S&P Small-Cap 600 Value ETF (NYSE:IJS)

iShares S&P Small-Cap 600 Value ETF (NYSE:IJS) is an ETF that primarily invests in small-cap value stocks. The fund seeks to track the performance of the S&P SmallCap 600 Value Index, and uses a representative sampling technique. iShares S&P Small-Cap 600 Value ETF (NYSE:IJS) has 467 holdings and a top ten holdings concentration of 8.99%. As of July 5, the fund has $8.55 billion in assets under management, an expense ratio of 0.18%, and offers a yield of 1.47%.

Southwestern Energy (NYSE:SWN) is one of the top holdings of iShares S&P Small-Cap 600 Value ETF (NYSE:IJS). On June 15, Benchmark analyst Subash Chandra upgraded Southwestern Energy (NYSE:SWN) to Buy from Hold and gave the stock a $14 price target.

Investors are betting big on energy since the first quarter of 2022. Insider Monkey found 35 hedge funds long Southwestern Energy (NYSE:SWN) at the close of Q1 2022. The total stakes of these hedge funds came in at $516.68 million, up from $255.41 million in the preceding quarter with 24 positions. The hedge fund sentiment for the stock is positive.

In the first quarter of 2022, D E Shaw raised its stakes in Southwestern Energy (NYSE:SWN) by 127%, bringing them to $180.81 million. D E Shaw is the most prominent stakeholder in the company.

Here is what Greenlight Capital had to say about Southwestern Energy (NYSE:SWN) in its first-quarter 2022 investor letter:

“SWN is the second largest producer of natural gas in the U.S. The company is well-situated to satisfy growing domestic and export demand. Over the short, medium and long term, Europe now intends to reduce its reliance on Russian energy and increase its use of U.S. LNG. Based on its 2021 year-end reserves – which assumed a $3.60/MMBtu long-term natural gas price – SWN has a PV-104 value of $13.83 per share. By the end of the first quarter, the U.S. natural gas 5-year forward curve averaged $4.28/MMBtu, while international seaborne LNG was close to $20/MMBtu. Over the intermediate term, with the benefit of substantial global investment in infrastructure, we expect prices for U.S. and international natural gas to converge. We acquired our shares at an average price of $6.58. SWN shares ended the quarter at $7.17.”