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As Small-Caps Rise, Pair These ETFs for Value, Growth Views

Small-caps have produced modest but healthy gains this year. After a slow start, the notable small-caps index Russell 2000 has returned 17.3% YTD. That has helped that same index return 30.7% over the last 12 months. Small-caps can produce helpful diversification and returns, but how best to approach them? A pair of ETFs from American Century offer both value and growth approaches to the space that can appeal.Key Takeaways: With the Russell 2000 index delivering a healthy 17.3% return YTD, small-caps could be a place where certain funds offer an edge. The duo of new small cap ETFs from American Century Investments, ACSV and ACSG, provides flexible options to do so. With their relatively lower costs, too, they can make for straightforward tools to manage small-caps exposure. The American Century Small Cap Growth Insights ETF (ACSG A-) and the American Century Small Cap Value Insights ETF (ACSV) cover the spectrum from growth to value in the small-cap world. The pair of ETFs charge the same fee of 49 basis points for exposure.  The former emphasizes firms with accelerating growth rates and improving fundamentals, while the latter looks for high quality names. Both take an active approach, producing a bottom-up portfolio based on fundamental research. Using proprietary research, both ETFs look to meet their respective style goals. Small-Cap Solutions in Growth and Value WrappersACSV sells firms once target valuations are met or when risk outweighs potential returns. ACSG, meanwhile, looks for firms with growing revenue trajectories and rising earnings. It also sells holdings if they no longer fit its strategy. ACSG has taken that approach to small-caps and returned 17.8% YTD, per ETF Database. ACSV meanwhile has returned 21.8%, according to YCharts data, in the same time frame. Those types of performances can help diversify portfolios away from AI hyperscale-driven concentration risk. At the same time, their active remit lets them adapt to events and leverage managerial experience in a lower-information space. See more: Complement Your Core Portfolio Holdings With Income ETF SDSI Those funds could offer some adaptable solutions to tack onto an existing core set of holdings. Together or individually, ACSV and ACSG may be funds to watch as they continue to settle into a competitive ETF landscape.  For more news, information, and analysis, visit the Core Strategies Content Hub.

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