Sometimes, big things come in small packages, and this summer’s surprise market upswing has revealed that the small-cap focused exchange traded funds(ETFs) are full of surprises.
To date, the best small-cap sampler is the iShares Russell 2000 (IWM) which has gained 14% for the month ended Aug. 15, almost double of the large-cap tracker SPDR S&P 500 (SPY), according to Dow Jones Newswires.
Many analysts were calling 2008 the year for the large-cap. The small-cap rally defies fundamentals and gives performance chasing-investors a run for their risk tolerance.
Other small-cap ETFs that have hit the market “sweet spot:
- iShares Russell Microcap (IWC): down 9.7% year-to-date; up 5.7% in the last month
- ProShares Ultra Russell 2000 Value (UVT): down 11% year-to-date ; up 12.8% in the last month
- ProShares Ultra Russell 2000 (UWM): down 13.1% year-to-date; up 11.3% in the last month
- iShares S&P Small Cap 600 Index (IJR): down 2.7% year-to-date; up 5.4% in the last month
For full disclosure, some of Tom Lydon’s clients own shares of IJR.
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.