How do I invest in European Small Cap stocks?

It is well known that companies with smaller market capitalizations generate higher returns over the long term. However, they also come with higher risks that investors should efficiently manage. Diversification of investments with ETFs is the safest bet for an independent investor to approach the small cap stocks.

There are essentially four indices available to invest with ETFs in European small cap companies. This Investment Guide for European small cap stocks will help you navigate between the peculiarities of the EURO STOXX® Small, MSCI EMU Small Cap, MSCI Europe Small Cap, STOXX® Europe Small 200 and the ETFs tracking them. It will allow you to find the most suitable European small cap ETFs for you by ranking them according to your preferences.

Le meilleur European Small Cap ETF selon le rendement sur un an au 31/10/2024

Classement de tous les $rankingLink en fonction de leur rendement

Le plus grand European Small Cap ETF en fonction du volume du fonds en EUR

Classement de tous les $rankingLink en fonction du volume du fonds

L’European Small Cap ETF le plus avantageux en fonction des frais totaux sur encours

Classement de tous les $rankingLink en fonction des frais totaux sur encours

Methodologies of the most important indices

Source: justETF Research; As of 31/01/2020

EURO STOXX® Small index

The EURO STOXX® Small index comprises small sized companies from the underlying EURO STOXX® index. The EURO STOXX® index is a subset of the STOXX® Europe 600 index comprising only companies from countries in the Eurozone. Small caps are determined as the bottom 33 percent companies in the underlying index ranked by their market capitalization. The stocks passing the selection screen are weighted by their free float market capitalization.

Methodology of the EURO STOXX® Small Factsheet Methodology

• 88 (as of 30/06/2021) small cap stocks from the Eurozone
• Index rebalancing takes place quarterly
• Stock selection is based on the size of companies
• Selection criteria: the bottom third of the EURO STOXX® index is selected
• Index weighted by free float market capitalization

MSCI EMU Small Cap index

The MSCI EMU Small Cap index captures small cap stocks across 10 developed countries in the Eurozone. The index represents the smallest firms (appr. 14 percent of the free float-adjusted market cap) of the MSCI EMU Investable Market Index. The stocks passing the selection screen are weighted by their free float market capitalization.

Methodology of the MSCI EMU Small Cap Factsheet Methodology

• 388 (as of 30/09/2024) small cap stocks from developed Eurozone countries
• Index rebalancing takes place quarterly
• Index has minimum size, free float, liquidity and length of trading criteria
• Stock selection is based on free float market cap
• Selection criteria: smallest companies of the MSCI EMU Investable Market Index
• Index weighted by free float market capitalization

MSCI Europe Small Cap index

The MSCI Europe Small Cap index includes small cap stocks from 15 developed countries in Europe. The index represents the smallest firms (appr. 14 percent of the free float-adjusted market cap) of the MSCI Europe Investable Market Index. The stocks passing the selection screen are weighted by their free float market capitalization.

Methodology of the MSCI Europe Small Cap Factsheet Methodology

• 870 (as of 30/09/2024) small cap stocks from developed European countries
• Index rebalancing takes place quarterly
• Index has minimum size, free float, liquidity and length of trading criteria
• Stock selection is based on free float market cap
• Selection criteria: smallest companies of the MSCI Europe Investable Market Index
• Index weighted by free float market capitalization

STOXX® Europe Small 200 index

The STOXX® Europe Small 200 index tracks the 200 smallest companies (as measured by free float market cap) from the underlying STOXX® Europe 600 index, which consists of 600 European companies. The stocks passing the selection screen are weighted by their free float market capitalization.

Methodology of the STOXX® Europe Small 200 Factsheet Methodology

• 200 small cap stocks from European countries
• Index rebalancing takes place quarterly
• Stock selection is based on their free float market cap
• Selection criteria: The 200 smallest stocks (ranked from 401 to 600) from the STOXX® Europe 600 index are selected
• Index weighted by free float market capitalization

Pour la sélection d’un European small cap ETFs, outre la méthodologie de l’indice et les performances, d’autres facteurs jouent un rôle important lors de la décision. Pour faciliter la comparaison, vous trouverez une liste des European small cap stocks avec les indications relatives à la taille, aux frais, à l’utilisation des revenus, au domicile du fonds et à la méthode de réplication classée en fonction de la taille des fonds.

Comparaison détaillée de tous les $rankingLink
Comparaison graphique de tous les $rankingLink

Source : justETF.com ; situation au : 20/11/2024

Comparaison des performances des Small Cap ETFs on European equities

Le tableau suivant compare les performances de tous les European small cap ETFs. Toutes les indications relatives aux performances sont données à la fin du mois et comprennent les distributions. Outre les performances à une date de référence, l’évolution dans le temps est décisive pour la comparaison des ETFs. Pour cela, servez-vous aussi de nos comparaisons graphiques.

• Par périodes
• Par années

Source : justETF.com ; situation au : 31/10/2024 ; indications en EUR, distributions comprises