.Stock picking might be the key to receiving exposure to little caps.Rob Harvey, that's behind the Dimensional United State Small Limit ETF, uses a definitely handled method to getting the group. He's attempting to stay clear of small caps that are underperforming and also debasing the mark." There's no explanation to hold providers that really are actually scraping the bottom of the gun barrel in terms of profitability," the firm's co-head of item specialists said to CNBC's "ETF Side" today. "You remove those from your tiny cap universe, [as well as] you can possibly do a lot for enhancing gains." The Russell 2000, which tracks small caps, is actually up much more than 12% until now this year. Meanwhile, the broader S&P five hundred is up approximately 23% in the same opportunity frame.As of Thursday, the fund's best holdings were actually Sprouts Farmers Market, Abercrombie & Fitch, Fabrinet, according to the Dimensional Fund Advisors website. Having said that, its best holding is actually cash money as well as cash equivalents, which makes up 1.13% of the fund.Ben Slavin, that's global head of ETFs for BNY Mellon takes note financiers are looking for additional proactively dealt with items to screen out tiny limit laggards." Financier sentiment has changed towards small caps, and you observe that in the amounts, in regards to where financiers are placing their dollars, coming from a circulation perspective," pointed out Slavin. "These sorts of techniques are actually gaining." As of Friday's close, the Dimensional U.S. Tiny Limit ETF is underperforming the Russell 2000 by greater than one per-cent this year.