Micro Cap ETFs: High Risk, High Reward?
Tuesday, June 29th, 2010Tom Lydon submits:
Micro-cap stocks have long held the allure of high profits, but those profits have come at the cost of higher risk. Exchange traded funds have been able to moderate that risk slightly by allowing investors to put their money toward a basket of micro-cap stocks instead.
According to Matthew McCall of Investopedia, micro-cap stocks, although risky, can have a place in every investor’s portfolio. The obvious two methods to investing in these type of stocks are through ETFs and individual equities. Since buying stock in micro-cap companies is more risky, it may be better to use ETFs.
