“Relative to U.S. large caps, this ETF has large weightings in business services and financials, while providing less exposure to the energy or media sectors,” Rawson said.
One reason for the lagging performance of small-cap ETFs so far in 2012 is strength in tech giant Apple (NasdaqGS: AAPL) and big banks such as JP Morgan Chase (NYSEArca: JPM), writes Brendan Conway at Barron’s.
The iShares Russell 2000 Index Fund “actually did what it was expected to do” during a bull rally such as the first quarter, he said. “And if you think that stocks can rise … that’s a recipe for small-caps to start beating the S&P 500 again.”
IWM hasn’t dropped below its 200-day exponential moving average in 2012.
iShares Russell 2000