Style ETFs are of different types. They can be categorized by the investment type and market capitalization. There are mainly 6 types of style ETFs.

  1. Value Style ETFs: Are style ETFs which passively track value stocks; stocks having a market price lower than their true value. They track a value index like Morningstar Large Value Index.
  2. Growth style ETFs: Are style ETFs which passively track growth stocks; stocks having high growth potential. They track a growth index like Russell Midcap Growth Index.
  3. Neutral Style ETFs: Are style ETFs which passively track stocks which are neither growth nor value.
  4. Small Cap Style ETFs: passively track small-cap stocks. Eg: S&P/Barra SmallCap 600 index.
  5. Mid Cap Style ETFs: passively track mid-cap stocks. Eg: S&P MidCap 400 Index.
  6. Large Cap Style ETFs: passively track large-cap stocks. Eg: WisdomTree Earnings.

The number of styles available for a market also differs. For example Dow Jones has all six styles of composite indexes, but Russell has only two styles. The index reconstitution period also differs with indexes; it can be annual or semi-annual. Moreover, the factors/rules used to classify stocks to include it in a style can also vary.

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