IWM posted a total return of 12.3% in the first quarter to outperform SPDR S&P 500 (NYSEArca: SPY), which gained 10.5%.
The chart below shows the relative performance of IWM versus SPY and the leadership of U.S. small-cap stocks since mid-November. Investors should keep an eye out for a potential reversal of the trend.
Full disclosure: Tom Lydon’s clients own SPY and IWM.