Small-Caps – Top Domestic ETFs
February 3rd at 10:18am by Tom Lydon
Taking a look at the domestic market, small-capitalization stocks have outperformed large-caps for the past six years. Thus far in 2006, the small-cap lead continues. Small-caps tend to do better when an economy is expanding and have stronger earnings growth.
Many of the small-cap exchange traded funds hit new highs this week creating a bigger gap between the large-caps. iShares Russell 2000 Index (IWM), which represents the small-cap sector of the U.S. equity broad market, is up 7.9% for 2006, while the S&P 500 is up 1.8%.
