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Best Small/Mid-Cap ETFs of Last Week

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The Russell 2000 Index was a winner last week, having gained 5.1%. The performance of the small-cap index Russell 2000 won over the S&P 500 (up 1.52%), the Dow Jones (up 0.96%), the Nasdaq Composite (2.82%).

The FDA granting the first full U.S. approval to Pfizer (PFE - Free Report) /BioNTech’s (BNTX) coronavirus vaccine, Comirnaty (BNT162b) has boosted investors’ confidence in economic reopening-friendly sectors. Moreover, the economy has returned to the pre-pandemic level with the GDP rising 6.5% annually in the second quarter, indicating a sustained recovery from the pandemic-induced recession.

Trillions of dollars of government stimulus spending and increased broad-based vaccinations will continue to power consumer spending and result in robust growth. In fact, the United States is projected to see the fastest economic growth in decades this year.

Looking at Q2 as a whole for the small-cap index, total earnings are expected to be up 242.4% from the same period last year on 32.6% higher revenues. The growth in earnings will follow a 40.7% expansion in Q3 of 2021, a 28.5% gain in Q4 of 2021 and a 17.4% uptick in Q1 of 2022, per the Earnings Trends issued on Aug 18, 2021. The projection seems pretty upbeat (read: Time for 5 Small-Cap Sector ETFs on Earnings Strength?).

Against this backdrop, below we highlight a few small-cap ETF winners of the last week.

ETFs in Focus   

Direxion Daily Mid Cap Bull 3X Shares (MIDU - Free Report) – Up 10.4%

The fund follows the S&P MidCap 400 Index, which measures the performance of the mid-cap segment of the U.S. equity universe. The Index is a capitalization-weighted index composed of 400 domestic common stocks. The expense ratio of the fund is 1.03% (read: Leveraged ETFs That Gained More Than 50% Last Week).

ETFMG Prime Junior Silver Miners ETF (SILJ - Free Report) – Up 10.3%

The underlying Prime Junior Silver Miners & Explorers Index provides a benchmark for investors interested in tracking public, small-cap companies that are active in silver mining exploration and production industry. The fund charges 69 bps in fees.

ETRACS 2x Leveraged U.S. Size Factor TR ETN (IWML - Free Report) – Up 10.1%

The underlying Russell 2000 TR USD Index measures the performance of the small capitalization sector of the U.S. equity market. The fund charges 95 bps in fees.

ALPS Medical Breakthroughs ETF (SBIO - Free Report) – Up 9.0%

The underlying S-Network Medical Breakthroughs Index captures research & development opportunities in the pharmaceutical industry. It consists of small-cap and mid-cap pharmaceutical and biotechnology stocks listed on US stock exchanges that have one or more drugs in either Phase II or Phase III US FDA clinical trials. The fund charges 50 bps in fees.

ETRACS 2x Leveraged MSCI US Momentum Factor TR ETN L) – Up 8.4%

The underlying MSCI USA Momentum GR USD Index captures large and mid-cap stocks of the US market. The fund charges 95 bps in fees.

Sprott Junior Gold Miners ETF (SGDJ - Free Report) – Up 8.4%

The underlying Solactive Junior Gold Miners Custom Factors Index aims to track the performance of small-capitalization gold companies whose stocks are listed on regulated exchanges. The fund charges 50 bps in fees.