ETF Investors Take a Shine to Small-Caps

Small-capitalization stocks and related exchange traded funds have regained their mojo in recent weeks, with more investors taking a second look into this asset category.

Over the past month, the iShares Russell 2000 ETF (NYSEArca: IWM) increased 5.9%, compared to the 2.2% gain in the large-cap S&P 500 Index. Furthermore, IWM has attracted $2.7 billion in net inflows in the past month, according to XTF data.

Reflecting growing interest in U.S. small-cap equities, CME Group revealed an uptick in activity in E-mini Russell 2000 Index futures, according to a FTSE Russell note.

“We are seeing a growing level of investor interest in the US small cap market as illustrated by the activity in E-mini Russell 2000 Index futures on the CME. The Russell 2000 Index is widely viewed as the definitive measure of the US small cap equity market and is used by a wide variety of market participants, particularly through our expanding partnership with CME Group,” Ron Bundy, FTSE Russell CEO North America Benchmarks, said in a note.