The fact that these small cap tools now exist in ETF form, will allow portfolio managers that have established track records in running tactical sector portfolios to apply their sector rotation logic to the small cap space when they believe that the market is in an environment where small caps may outperform large caps.
We should mention that from a trading standpoint, the PowerShares small cap sector ETFs all trade a fraction currently of the average daily volumes of the large cap sector products from SSGA, but from a liquidity standpoint, all of these ETFs can be feasibly traded in large size provided the proper techniques and access to liquidity via a seasoned trading desk are sought out.
PowerShares S&P Small Cap Healthcare
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