Can Small-Cap ETFs Continue to Run Ahead of Peers?

Demand for small-cap ETFs has been strong, with IJR alone pulling in $818 million since November 8, according to data on etf.com. The $24 billion ETF traded on average 1 million shares in the last six months, but volume spiked to 1.5 million shares in the last month.

PowerShares S&P Small Cap Financials Portfolio (PSCF), was one such sector ETF that increased in value since the election as it has high exposure to regional banks that can potentially benefit from rising rates.

Meanwhile, PowerShares S&P Small Cap Utilities Portfolio (PSCU), did not rise as much in the last ten days, as its dividend-yielding electric and gas utilities holdings were out of favor; the ETF also has telecom exposure.

For more information on the small-cap segment, visit our small-cap category.