The MSCI World Small Cap Value Weighted Index is based on a traditional market cap weighted parent index, the MSCI World Small Cap Index, which includes small cap stocks across 23 Developed Markets (DM) countries*. The MSCI World Small Cap Value Weighted Index reweights each security of the parent index to emphasize stocks with lower valuations. Index weights are determined using fundamental accounting data—sales, book value, earnings and cash earnings—rather than market prices.
+1, looking for a small cap value etf
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Freetrade can’t add an index – only an ETF which tracks one. Unfortunately, according to JustETF at least, there are no EU-listed ETFs which track this index.
The closest I could find is this US-focused one: SPDR MSCI USA Small Cap Value Weighted UCITS ETF. However, there’s no LSE listing in GBP or GBX, so Freetrade may not be able to add it.
Given the lack of ETFs, you could try to achieve something vaguely similar with investment trusts. As an example, Aberforth Smaller Companies (ASL) invests in UK small caps and is value-orientated. Smithson (SSON) could be another option although it focuses more on quality than value.
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Arghhh that’s frustrating, I actually requested it exactly because of the Ben Felix video @gargolonzo posted.
Thanks for the explanation though - after looking into this myself a bit more it is frustrating that we don’t really get any value oriented small cap ETFs, there seem to be quite a few on US side.
I’ll take a look into those trusts though so thanks again!
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