In fact, Batnick’s research points out that all investors had to do following the previous Russell 2000 death crosses is wait three months for a median gain of 7.1%. And yes, the research is relevant to IWM because the data track Russell 2000 death crosses back to 2001. IWM, the largest small-cap ETF debuted in 2000.
Some investors are apparently betting history repeats. Over the past week, IWM has hauled in $1.1 billion in new assets. Investors have also pulled $42.6 million from the Direxion Daily Small Cap Bear 3X Shares (NYSEArca: TZA) while adding $93.3 million to the Direxion Daily Small Cap Bull 3X Shares (NYSEArca: TNA). [Small-Cap ETF Riddle]
iShares Russell 2000 ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of IWM.