Both Barron’s and Knox Ridley have been writing about US Small Caps during the past week. As Findlay Park started as a US Small Cap fund before changing to an unconstrained portfolio I thought that this would be a good area to consider at the present time. I do not like the idea of buying a few small cap stocks as the risk is very high, so I looked at the funds mentioned in Barron’s.
I prefer ETFs over managed funds for additional investment in the U.S. , mainly because mutual funds pay local taxes and spin off tax credits to holders. I am investing tax free funds, so the tax credits have no value.
The ETF which I decided to buy is iShares Core S&P Smaller Companies and 320 of these went into my pension fund yesterday @ 82.50. I will also add another 180 to my ISA account whenever fund is approved by my ISA managers – as long as the price is close to 82.50.