Small-Cap ETFs May Find Support from Foreign Investors

According to the CME Group, E-mini Russell 2000 Index futures showed steadily growing activity. June 15 was the expiration date for June futures contracts and the end of the roll period – the final date when traders roll out of the existing June contracts into the December contracts. As of June 15, total open interest for E-mini Russell 2000 Index futures was at over 608,000 contracts with an average daily volume of 142,000 contracts.

CME especially highlighted the growing interest in global investors, especially volume coming from Europe, Asia-Pacific and Latin America regions in addition to North America.

“The strong performance of the Russell 2000 Index continues to reflect the importance of the small cap space in customers’ investment and trading strategies,” Tim McCourt, CME Group managing director and global head of equity products and alternative investments, said in a note. “Given the composition of the index, the Russell 2000 provides a unique tool that is more US-domestic in nature; particularly in 2018 where we have seen certain US economic factors come to light such as stronger economic growth and tax reform. In addition, we have seen growing interest in US small caps by our non-US clients. This has helped drive more geographically diversified sources of volume as participants look to capitalize on the distinct exposure the Russell 2000 provides.”

For more information on small-capitalization stocks, visit our small-cap category.