As for how potent the January Effect can be, particularly when it starts early, recent history serves as proof. From Dec. 3, 2012 to Jan. 31, 2013, DWAS, IWM and SCHA all gained at least 10%. The S&P 500 is up 23.3% this year.
Chart Courtesy: Eagle Bay Capital
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of IWM and SCHA.