Investors debate the January Effect, where small-cap stocks may rise at the start of the year due to repurchasing after year-end losses. Small-cap ETFs offer diversification and potential for outsized returns, like the actively managed DISV with a 0.42% expense ratio and 47% YTD return, outpacing the S&P 500 and IJR.

ISVL, like DISV, targets international small-cap value stocks but excludes U.S. and Korean companies. ISVL has a lower 0.31% expense ratio, with a 43% return in the last year, despite liquidity concerns due to its smaller AUM and trading volume.

DFAU, an actively managed ETF, offers access to U.S. companies with smaller capitalization, lower prices, and higher profitability. With 2,300 positions and a 0.12% expense ratio, it provides a broad-based U.S. stocks fund and has performed similarly to the S&P 500 in 2025.

Read more at Yahoo Finance: Prepare for the January Effect With These 3 Small-Cap ETFs