State Street Global Advisors (SSgA) has its first ever exchange-traded fund (ETF) to track the MSCI World Small Cap Index.

The SPDR MSCI World Small Cap UCITS ETF is listed on the Deutsche Börse and will cover small caps in 24 developed market countries.

It seeks to offer exposure to the small-cap segment of all developed markets in a single investment and can be used to tilt a portfolio towards growth.

The index is well diversified with more than 4,000 constituents. The US has the largest country weight with 58.2%, followed by Japan (10.1%), the UK (8.4%), Canada (4.4%) and Australia (2.6%).

The remaining 19 countries in the index comprise about 16.3%.

State Street Global Advisors head of SPDR UK, Eleanor Hope-Bell, said: "Small caps are an attractive segment of the market offering the potential for high returns and greater diversification within a portfolio.

"Small caps also tend to outperform large cap stocks over time. MSCI World Small Cap, for example, has outperformed MSCI World in the last three, five and ten years. This investment tool will help investors capture the ‘small cap premium’ identified in academic research globally."