The U.S. Size & Style channel is the starting point for navigating the core building blocks of the domestic equity market. Whether you are seeking broad market exposure or targeted factor tilts, this channel provides the framework to move from thousands of ETFs to a precise, actionable shortlist.
At ETF Action, we move beyond simple labels. This channel is powered by a multi-faceted classification system designed to provide transparency into how every strategy is built, managed, and weighted. While our foundational classification architecture remains consistent across all channels, the fields and data points within this section are specifically tailored to the unique characteristics of the U.S. Size & Style universe.
The “What”: Defining the Sandbox
U.S. Size & Style ETFs focus on broad segments of the U.S. equity market. Unlike sector or thematic funds, these strategies are designed to provide varying degrees of exposure to the diversified domestic market based on market capitalization and investment style.
While every fund is assigned to a primary Category (the traditional 9-style box grid), our classification system breaks funds down by their DNA to account for modern strategies that don’t fit perfectly into traditional boxes.
The “How”: Three Paths to Navigation
While our tools allow you to filter, group, or sort by any field to align with your own proprietary process, we generally see users navigate the channel through three primary paths:
Path 1: Traditional Size & Style (The 9-Box Grid)
For investors looking for standard building blocks, the Category filter is your primary tool. This groups funds into the traditional grid (Large/Mid/Small crossed with Value/Core/Growth).
- The Reality of the Grid: Traditional size and style boxes are essential for institutional benchmarking and creating clean datasets for ratings, flows, and peer analysis. However, it is important to note that a large number of funds—whether by intentional strategy design or the natural evolution of their holdings—do not align neatly with these standard groupings.
- Use Case: Building a core portfolio or benchmarking a manager against a specific style peer group while acknowledging that some funds may drift or straddle multiple boxes.
Path 2: Advanced Factors (Segment, Strategy & Selection)
For those seeking more specific solutions, we recommend starting with the Segment to define your universe, then applying Strategy and Selection filters to isolate the investment process.
1. Define Your Universe (Segment) We intentionally use broad groupings to solve for overlapping definitions and evolving fund mandates:
- Total Market: Captures strategies that focus across all market capitalizations (including Large Cap).
- Extended Market: Groups Mid and Small cap strategies together, acknowledging that one manager’s definition of “Small” may be another’s “Mid.”
2. Identify the Objective (Strategy & Selection) Once the segment is set, these two fields work together to define the “how” of the fund:
- Strategy: The broadest grouping level: Beta, Factor, Tactical, or Specialty.
- Selection: Refines the Strategy to show exactly how securities are chosen:
- Beta: Identical to Strategy; the goal is to track a broad market cap index.
- Factor: Identifies equity drivers like Dividends, Momentum, Quality, Growth, Value, or Multi-Factor.
- Tactical: Highlights dynamic moves like Sector/Factor Rotation or a Cash Toggle (de-risking into cash).
- Specialty: Captures sophisticated equity mandates including Hedged Equity or Long | Short.
Path 3: Technical Filters
Once you have defined your sandbox, use our secondary classification fields to isolate specific types of strategies:
- Discipline: Filter for Active vs. Passive to compare managers side-by-side.
- Group: Identify unique aspects such as Ex-Sector strategies or funds focused on Recent IPOs.
- ESG Flag: Quickly identify funds with a stated objective to screen for ESG criteria.
- Implementation: Distinguish between standard Market Cap weighting and Equal Weighted or proprietary Scored methodologies.
Your Process, Your Navigator
The real power of the ETF Action classification system is its flexibility in how you consume data. You are not locked into a single view; you can interact with the data in two primary ways:
- Specific Database Searches (Filtering): Use the filtering pane to isolate a “qualified shortlist” of funds. Example: Filter for Strategy: Tactical and Selection: Cash Toggle to see every fund designed to mitigate downside risk.
- Broad Navigation & Monitoring (Grouping): Use the Navigator tool to build custom dashboards. You can Filter on a broad field (e.g., Strategy: Factor) and then Group by another (e.g., Selection) to see aggregated stats across all factors. This allows you to monitor trends, see where the flows are moving, and then expand any group to see the individual funds within.
Proprietary Benchmarking & ETF Proxies Every custom view remains anchored by our proprietary benchmarking. To ensure these tools remain accessible and free for our users, we utilize ETF Proxies rather than expensive licensed indices.
- Risk Benchmark: We use SPY (S&P 500 ETF) as the universal yardstick for risk.
- Beta Tracker (Best Fit): Each category is paired with the most relevant Russell Proxy (e.g., IWB for Russell 1000 or IWD for Russell 1000 Value) for immediate characteristic and performance comparison.
Ready to start screening?
Our powerful Navigator and classification tools are available on our gated platform. Create a FREE account today to access the U.S. Size & Style channel and start building your own custom dashboards.