That does not mean small-caps will not live up to their reputation for strong holiday season performances. However, risk-tolerant traders that are long ETFs such as IWM may want to consider a short-term hedge of those positions with a bearish ETF like the Direxion Daily Small Cap Bear 3X Shares (NYSEArca: TZA).
Russell 2000 December Performances
Chart Courtesy: Bespoke Investment Group
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of IWM.