Krinsky also expects the outperformance among smaller stocks to continue through the first three months of the new calendar year. [Small-Cap ETFs to Shine in 2015]
Looking at the fundamentals, investors point to three factors that will help small-caps ahead. For starters, small-caps generate the majority of revenue domestically, so low gas prices will translate to a nice boost in U.S. spending. A strong U.S. dollar will weigh on large-cap stocks with heavy international exposure. Lastly, slowing growth in China and Europe could weigh on large U.S. exporters.
iShares Russell 2000 ETF
For more information on small-capitalization stocks, visit our small-cap category.
Max Chen contributed to this article. Tom Lydon’s clients own shares of IWM.