“The main driver of small-caps is the cyclicality of the market,” Patrick Moonen, senior strategist at ING Investment Management, said in the article. “What are the economic prospects and how are risk aversion or risk appetite evolving? Both factors were clear tailwinds for small-caps so far this year.”
Economists predict the U.S. economy will grow 2.4% in the fourth quarter and hit 3% growth a year from now.
Some other small-cap ETFs include:
- iShares Russell 2000 ETF (NYSEArca: IWM): up 33.0% year-to-date
- Vanguard Small-Cap ETF (NYSEArca: VB): up 32.2% year-to-date
- Schwab U.S. Small Cap Fund (NYSEArca: SCHA): up 33.6% year-to-date
- PowerShares DWA SmallCap Technical Leaders Portfolio (NYSEArca: DWAS): up 42.8% year-to-date
- SPDR S&P 600 Small Cap ETF (NYSEArca: SLY): up 34.6% year-to-date
For more information on small-cap stocks, visit our small-cap category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own IWM, SCHA.