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Should State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) Be on Your Investing Radar?
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Designed to provide broad exposure to the Small Cap Growth segment of the US equity market, the State Street SPDR S&P 600 Small Cap Growth ETF (SLYG - Free Report) is a passively managed exchange traded fund launched on September 25, 2000.
The fund is sponsored by State Street Investment Management. It has amassed assets over $4.30 billion, making it one of the larger ETFs attempting to match the Small Cap Growth segment of the US equity market.
Why Small Cap Growth
Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.74%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector -- about 20.7% of the portfolio. Information Technology and Healthcare round out the top three.
Looking at individual holdings, Interdigital Inc (IDCC) accounts for about 1.21% of total assets, followed by Moog Inc Class A (MOG.A) and Caretrust Reit Inc (CTRE).
The top 10 holdings account for about 10.16% of total assets under management.
Performance and Risk
SLYG seeks to match the performance of the S&P SmallCap 600 Growth Index before fees and expenses. The S&P SmallCap 600 Growth Index measures the performance of the small-capitalization growth sector in the U.S. equity market. The selection universe for the S&P SmallCap 600 Index includes all U.S. common equities listed on the NYSE, NASDAQ Global Select Market, NASDAQ Select Market and NASDAQ Capital Market with market capitalizations between $250 million and $1.2 billion.
The ETF return is roughly 10.64% so far this year and is up about 34.34% in the last one year (as of 04/16/2026). In the past 52-week period, it has traded between $76.02 and $104.31.
The ETF has a beta of 1.05 and standard deviation of 19.78% for the trailing three-year period, making it a medium risk choice in the space. With about 341 holdings, it effectively diversifies company-specific risk.
Alternatives
State Street SPDR S&P 600 Small Cap Growth ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SLYG is a sufficient option for those seeking exposure to the Style Box - Small Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 2000 Growth ETF (IWO) and the Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) track a similar index. While iShares Russell 2000 Growth ETF has $13.44 billion in assets, Vanguard Small-Cap Growth Index Fund ETF Shares has $21.89 billion. IWO has an expense ratio of 0.24% and VBK charges 0.05%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) Be on Your Investing Radar?
Designed to provide broad exposure to the Small Cap Growth segment of the US equity market, the State Street SPDR S&P 600 Small Cap Growth ETF (SLYG - Free Report) is a passively managed exchange traded fund launched on September 25, 2000.
The fund is sponsored by State Street Investment Management. It has amassed assets over $4.30 billion, making it one of the larger ETFs attempting to match the Small Cap Growth segment of the US equity market.
Why Small Cap Growth
Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.74%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector -- about 20.7% of the portfolio. Information Technology and Healthcare round out the top three.
Looking at individual holdings, Interdigital Inc (IDCC) accounts for about 1.21% of total assets, followed by Moog Inc Class A (MOG.A) and Caretrust Reit Inc (CTRE).
The top 10 holdings account for about 10.16% of total assets under management.
Performance and Risk
SLYG seeks to match the performance of the S&P SmallCap 600 Growth Index before fees and expenses. The S&P SmallCap 600 Growth Index measures the performance of the small-capitalization growth sector in the U.S. equity market. The selection universe for the S&P SmallCap 600 Index includes all U.S. common equities listed on the NYSE, NASDAQ Global Select Market, NASDAQ Select Market and NASDAQ Capital Market with market capitalizations between $250 million and $1.2 billion.
The ETF return is roughly 10.64% so far this year and is up about 34.34% in the last one year (as of 04/16/2026). In the past 52-week period, it has traded between $76.02 and $104.31.
The ETF has a beta of 1.05 and standard deviation of 19.78% for the trailing three-year period, making it a medium risk choice in the space. With about 341 holdings, it effectively diversifies company-specific risk.
Alternatives
State Street SPDR S&P 600 Small Cap Growth ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SLYG is a sufficient option for those seeking exposure to the Style Box - Small Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 2000 Growth ETF (IWO) and the Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) track a similar index. While iShares Russell 2000 Growth ETF has $13.44 billion in assets, Vanguard Small-Cap Growth Index Fund ETF Shares has $21.89 billion. IWO has an expense ratio of 0.24% and VBK charges 0.05%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.