Problem:

When the following formula is used to find the alphabetically lowest letter in List1 (column A):
=CHAR(SMALL(CODE(A2:A6),1))
An incorrect result of \"z\" is returned.

Solution:

Use the CHAR, SMALL, and CODE functions as shown in the following Array formula:
{=CHAR(SMALL(CODE(A2:A6),1))}

To apply Array formula:
Select the cell, press .