SPDR Portfolio S&P 600 Small Cap ETF has Underperformed in Recent Weeks

The US equity market has performed well this year, leading numerous exchange-traded funds (ETFs) to record profits for investors.

SPSM Down by 6% in the Past Month

The SPDR Portfolio S&P 600 Small Cap ETF (SPSM) is a passively managed fund that has been around since 2013. The ETF is sponsored by State Street Global Advisors and has more than $4 billion in assets under management, making it one of the larger funds attempting to match the Small Cap Blend segment of the US stock market.

SPSM is designed to match the performance of the Russell 2000 Index before fees and expenses. Meanwhile, The Russell 2000 Index measures the performance of the small-cap segment of the US stock market.

The SPDR Portfolio S&P 600 Small Cap ETF has underperformed in recent weeks, down by more than 6% over the past month. At press time, SPSM is down by 1.34% and trading above the $43.50 level.

The fund has the heaviest allocation to the Financials sector, with 18.60% of its portfolio in that sector. The other leading sectors in the fund are industrials and information technology.

SPSM has Performed Excellently so Far This Year

Despite the recent dip, the SPDR Portfolio S&P 600 Small Cap ETF has performed excellently since the start of the year. The fund’s value is up by more than 22% since the start of 2021, making it one of the best performers amongst ETFs tracking small cap companies in the US stock market.

SPSM can still recover and trade close to the $47 level before the end of the year. It has an annual operating expense of 0.05%, making it one of the least expensive products in the space. Furthermore, the fund’s 12-month trailing dividend yield is 1.16%. The fund has a beta of 1.18 and a standard deviation of 29.63% for the trailing three-year period.