The PDF version of the August issue of ETFInvestor is now available for download.

The iPad version will be available in approximately 3 business days.

This month’s issue is dedicated to small-cap stocks. To kick things off, I review the research that stirred investors’ interest in the market’s smallest names and discuss how it was subsequently all but debunked and then resuscitated (kind of). From there, I take a look at the differences in index methodologies across the small-cap benchmarks behind some of the most popular exchange-traded funds in the space. I conclude with my thoughts on what it all means with respect to portfolio construction.

Also in this issue:

• Alex Bryan demonstrates how moving down the market cap ladder gives a boost to factor exposures.
• Daniel Sotiroff explores the risk/reward relationship in foreign small caps.
• We profile our top-rated foreign small-cap ETF, Vanguard FTSE All-World Ex-U.S. Small Cap ETF VSS.
• Adam McCullough shares his analysis of Gold-rated iShares Core S&P Small Cap ETF IJR.
• We share our takes on some of our highest- and lowest-conviction picks among U.S. small-cap ETFs.
• In this month’s Sector Snapshot, I look at the tech sector’s July comeback and the key driver of the apparent cheapening of the Consumer Discretionary Select Sector SPDR XLY, as measured by our price/fair value ratio.

You can download this month's issue here:

http://etf.morningstar.com/Newsletter.aspx?download=currentIssue

Best,

Ben Johnson, CFA