“And right now, another reason you’re seeing this massive small-cap outperformance is because with bond yields moving higher, [small caps]have become more competitive versus stocks that pay dividends,” Salamone added. “So you’re seeing a rotation out of high-dividend stocks as investors seek higher returns via capital gains and higher beta type names such as the small cap.”
iShares Russell 2000
For more information on small-capitalization funds, visit our small-cap category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own IWM.