State Street SPDR Portfolio S&P 600 Small Cap ETF

SPSM

Market cap $17B

The $85 billion listing last month of SpaceX, Elon Musk's aerospace, satellite communications and artificial intelligence company, was an important market event. The company's dual-class share structure, conferring disproportionate voting power on its founder, could be expected to serve as a template for the next wave of high-profile IPOs, with OpenAI and Anthropic expected to follow suit in the coming quarters.

The Schwab U.S. Small-Cap ETF (SCHA) holds nearly three times as many positions as the State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM). Both ETFs carry identical 0.03% expense ratios, but SPSM has a higher dividend yield than SCHA.

The Russell 2000 has now lagged the broader market for many years. Small-cap stocks tend to perform well during periods of lower interest rates and economic expansion.

State Street SPDR Portfolio S&P 600 Small Cap ETF is considerably larger and than iShares Morningstar Small-Cap ETF. iShares' ETF holds over 1,500 stocks, providing more than double the individual holdings of the State Street fund.

State Street SPDR Portfolio S&P 600 Small Cap ETF and Vanguard Small-Cap ETF share the same ultra-low expense ratio of 0.03%. Vanguard Small-Cap ETF holds more than twice as many stocks as State Street SPDR Portfolio S&P 600 Small Cap ETF, providing broader market exposure.

Launched on July 8, 2013, the State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Blend segment of the US equity market.

Fed holds rates steady but turns more hawkish. Here's how AI, Japan, dollar, small-cap and dividend ETFs could benefit from a higher-for-longer rate backdrop.

Small-cap stocks are beginning to outperform again, but ETF investors remain overwhelmingly focused on mega-cap technology and AI trades — a disconnect some strategists believe could create an opportunity in overlooked parts of the market.

There has been a visible disparity between the performance of U.S. small-caps and U.S. large-caps so far this year. What hasn't been too visible is a lot of investor interest in the action.

Small-cap stocks have quietly been outperforming the S&P 500 through early 2026, a rotation that many investors who stayed concentrated in large-cap technology missed entirely.