The ETF Underdogs: 5 ETFs Under $50 Million AUM to Watch

Global X Guru Index ETF

GURU

-0.7%

GURU is an interesting hedge fund replication ETF that tracks the Solactive Guru Index. Its methodology is straightforward: it replicates the price movements of the top equity holdings from a select group of hedge funds. These positions are adjusted quarterly after the publication of the funds’ 13F filings.

Why take this approach? GURU offers several advantages. It’s vastly more liquid than most hedge funds, allowing investors to trade shares freely without lock-up periods. It also avoids the accredited investor requirement, meaning anyone with a brokerage account can buy in.

While its 0.75% expense ratio is on the higher side for ETFs, it’s still significantly cheaper than the traditional hedge fund “2 and 20” model, where investors pay a 2% management fee plus 20% of profits.

Hoya Capital Housing ETF

HOMZ

-1.47%

There are plenty of ETF options for gaining exposure to real estate, including REIT ETFs, mortgage REIT ETFs, homebuilder ETFs, and mortgage-backed securities ETFs. What makes HOMZ unique is its hybrid approach.

Unlike broader real estate ETFs, HOMZ focuses explicitly on housing. This allows it to hold not only REITs but also companies tied to the housing ecosystem, such as home improvement retailers like Home Depot and Lowe’s, and homebuilders like Toll Brothers.

HOMZ has performed impressively, delivering a 14.88% annualized return over the last five years. This strong performance has been buoyed by its exposure to homebuilders and home improvement stores, which have benefited from rising housing demand.

 Income is also a focus of this ETF, with a 30-day SEC yield of 2.18% and monthly distributions. At 0.3%, HOMZ’s expense ratio is reasonably priced.

Direxion Daily S&P 500 High Beta Bull 3X Shares ETF

HIBL

-0.23%

Three-times leveraged ETFs are already popular, but the concept doesn’t stop at providing amplified exposure to indexes like the S&P 500 or specific sectors. These funds can also leverage factors, and one of the more interesting—albeit highly volatile—options is HIBL.

HIBL targets high-beta stocks, essentially the opposite of a low-volatility strategy. It tracks the S&P 500 High Beta Index and uses swaps to deliver three times the index’s daily returns.

The reference index itself is already highly sensitive to market movements, and the 3x leverage amplifies that sensitivity significantly, leading to large swings in performance.

The ETF’s composition aligns with its strategy, with an overweight to cyclical sectors such as technology, consumer discretionary, and industrials—sectors typically associated with higher market sensitivity.

While HIBL can generate outsized returns in strong bull markets, it’s best suited for short-term traders who are comfortable with its amplified volatility.

VanEck Africa Index ETF

AFK

-1.79%

South African equities are fairly well-known and actively traded within emerging markets, especially after the country’s inclusion in the BRICS bloc. But what about the rest of the African continent?

For those seeking broader African exposure, there are few options beyond AFK. This ETF tracks the MVIS GDP Africa Index, which includes companies incorporated in Africa. Recognizing the limitations of Africa’s smaller capital markets, the index also includes companies incorporated outside of Africa but deriving at least 50% of their revenues or assets from the continent.

AFK has been around surprisingly long, dating back to July 2008. However, its high costs may have deterred many investors. The fund has a gross expense ratio of 1.47%, which is waived down to 1.31%. While that’s steep compared to most ETFs, it reflects the higher costs associated with investing in frontier markets.

Franklin FTSE Latin America ETF

FLLA

+0.18%

One ETF niche I expect to grow in the future is regional ETFs. These sit between single-country funds, like those focused solely on China, and broad geographic funds covering entire categories like emerging or developed markets.

Regional ETFs remain a small category, and the few that do exist tend to focus on widely traded markets like Asia Pacific (Japan, China, South Korea, Taiwan) or the Eurozone. For Latin America, however, options are limited, with FLLA being one of the few standouts.

FLLA is a passive ETF tracking the FTSE Latin America Capped Index. The portfolio is heavily dominated by Brazil and Mexico, with smaller allocations to Chile and Colombia. Personally, I’d like to see Argentina included, particularly given potential reforms under the leadership of Javier Milei.

The main selling point of FLLA is its cost—or lack thereof. With a 0.19% expense ratio, it’s exceptionally affordable for emerging market exposure, making it an attractive choice for investors looking to access Latin America’s growth potential without paying steep fees.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.