Introduction

The SPDR S&P 600 Small Cap Growth ETF, known as SLYG and valued at $84.63, monitors the S&P 600 SmallCap 600 Growth Index. This index comprises small-cap stocks from the S&P SmallCap 600 Index that display higher-than-average growth potential, including improved revenues, changes in price-to-earnings ratio, and strong momentum.

Companies must meet specific criteria to be part of the growth index, including maintaining a public float of 10% or more and achieving four consecutive quarters of positive earnings. The growth index is adjusted based on market capitalization and reconstituted quarterly, while the S&P SmallCap 600 Index undergoes annual rebalancing in December.

Similar to many small-cap ETFs, including SLYG, the fund employs a sampling strategy to mirror the index's performance, not necessarily holding all stocks included in the index.

Presently, the SPDR S&P 600 Small Cap Growth ETF owns 343 shares with total net assets valued at $3.1 billion. The weighted average market cap of the holdings is $3.4 billion, and an anticipated earnings growth of 11.6% is projected over the next three to five years.

The fund's top three sectors by weight are industrials (19.7%), consumer discretionary (16.2%), and technology (14.3%). Despite being categorized as a small-cap growth fund, it is a mix of 50% growth and 50% value stocks.

The top 10 holdings in SLYG constitute 11% of its total net assets, with an annual turnover rate of 48%. Among its largest holdings are e.l.f. Beauty (ELF), a cosmetics company, and SPS Commerce (SPS), a cloud-based supply chain management solutions provider.

Over the past decade, the SPDR S&P 600 Small Cap Growth ETF has registered an annualized total return of 8.9%.