A new all-ETF model portfolio is now available to ETFdb Pro members; the Small Cap ETFdb Portfolio offers a broad-based, balanced collection of ETFs constructed for investors who believe that small cap securities offer a superior long-term risk/return profile relative to large cap stocks. Most portfolios make moderate allocations to mid cap and small cap securities, allowing for large cap securities to account for the majority of equity exposure. While there are some advantages to such an approach, there are also certain drawbacks; tilts towards large caps can result in top-heavy exposure, limited diversification, and skewed sector profiles that drastically underweight industries that may be important to solid long-term performance. Investing in small caps may appeal to investors looking to enhance long term returns, as smaller securities have historically delivered more substantial capital appreciation than large cap securities. Moreover, a small cap-focused approach may have some benefits when it comes [...] Click here to read the original article on ETFdb.com. Related Posts: Inside The 8x Leveraged ETN January ETF Flows: Hot Start To 2011 CME Nixes Futures On ETFs Daily ETF Roundup: GDX Falls, IWM Gains Free ETF Trading: Comparing All The Options