Although large-cap stocks and exchange traded funds (ETFs) are outperforming small-cap ETFs year-to-date, small-cap ETFs are rebounding off the Aug. 15 market low better than the large-cap ETFs. As all domestic indicators declined below their long-term trend lines in the past 30 days, the recent retractions should be encouraging for investors.
For investors interested in domestic small-cap ETFs, a few to consider are the iShares S&P SmallCap 600 Value Index (IJS) and the iShares Russell 2000 Value Index (IWN). While the Dow is up 3% since Aug. 15, IJS and IWN are both up 5.5%. Even though IJS and IWN are both domestic small-cap ETFs, their holdings are completely different, so investors who had both would not need to worry about overlaps in their portfolio. Some top holdings in IJS include Shaw Group (SGR), UGI (UGI) and Kansas City Southern (KSU). Some top holdings in IWN include CF Industries Holdings, Ohio Casualty (OCAS) and Realty Income (O). Year-to-date, IJS is up 0.6%, and IWN is down 3.4%.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.