Should State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) Be on Your Investing Radar?

Launched on September 25, 2000, the State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Growth segment of the US equity market.The fund is sponsored by State Street Investment Management. It has amassed assets over $3.65 billion, making it one of the larger ETFs attempting to match the Small Cap Growth segment of the US equity market.Why Small Cap GrowthWith more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking.While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks. CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.It has a 12-month trailing dividend yield of 1.1%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Industrials sector -- about 20.7% of the portfolio. Information Technology and Healthcare round out the top three.Looking at individual holdings, Sterling Infrastructure Inc (STRL) accounts for about 1.46% of total assets, followed by Spx Technologies Inc (SPXC) and Interdigital Inc (IDCC).Performance and RiskSLYG seeks to match the performance of the S&P SmallCap 600 Growth Index before fees and expenses. The S&P SmallCap 600 Growth Index measures the performance of the small-capitalization growth sector in the U.S. equity market. The selection universe for the S&P SmallCap 600 Index includes all U.S. common equities listed on the NYSE, NASDAQ Global Select Market, NASDAQ Select Market and NASDAQ Capital Market with market capitalizations between $250 million and $1.2 billion.The ETF return is roughly 6.65% so far this year and is down about 0.88% in the last one year (as of 12/10/2025). In the past 52-week period, it has traded between $72.61 and $97.90.The ETF has a beta of 1.05 and standard deviation of 20.05% for the trailing three-year period, making it a medium risk choice in the space. With about 349 holdings, it effectively diversifies company-specific risk.AlternativesState Street SPDR S&P 600 Small Cap Growth ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SLYG is a sufficient option for those seeking exposure to the Style Box - Small Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.The iShares Russell 2000 Growth ETF (IWO) and the Vanguard Small-Cap Growth ETF (VBK) track a similar index. While iShares Russell 2000 Growth ETF has $13.46 billion in assets, Vanguard Small-Cap Growth ETF has $21.00 billion. IWO has an expense ratio of 0.24% and VBK charges 0.07%.Bottom-LineWhile an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report State Street SPDR S&P 600 Small Cap Growth ETF (SLYG): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks