Small caps bulldozed by ETFs

The unstoppable wave of money flowing into exchange-traded funds is causing a crisis in capital formation for the hundreds of small and micro-cap stocks that comprise the bulk of the 2000 companies listed on the ASX.

The 1700 listed companies outside the S&P/ASX 300 are in the midst of a slow and painful decline that is undermining the two core reasons for listing: access to capital and liquidity.

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