XLK and other sector ETFs set to gain as expectations surge for a potential Federal Reserve rate cut in December.
Launched on May 22, 2000, the iShares Russell 2000 ETF (IWM) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Blend segment of the US equity market.
IWMI (Neos Russell 2000 High Income ETF) offers a 14.3% dividend yield by selling covered calls on the Russell 2000 index. IWMI underperforms IWM in strong markets but provides higher income. While theoretically the call premiums provide a drawdown parachute, in practice, due to the lower liquidity of IWMI, this has not proved to be effective.
Small caps rebounded lately. ETFs like IWM, FESM, VTWO & more outpaced SPY in 6 months as rate-cut hopes and easing tariffs fueled momentum.
After years of lagging behind their large-cap peers, small caps are finally poised for a meaningful move higher.
The earnings season is about to begin, and this period allows retail investors to get a peek into the businesses that are making money and the ones struggling.
After a long period of underperformance, small-cap U.S. stocks may be staging a comeback. While it's too early to say for sure whether this is the start of a sustained rally or just an occasional rise, recent data shows encouraging signs for small-cap investors.
Rate cut hopes and investor rotation beyond tech are fueling renewed momentum in small-cap stocks, with the Russell 2000 surging in August.
IWM is gaining momentum as rate-cut hopes, attractive valuations and rising small-business optimism fuel renewed interest in small-cap ETFs.
IWM could get a lift from easing inflation, possible Fed rate cuts, rising small-business optimism, and decent earnings forecasts.
Key Points in This Article: Small-cap stocks, via the Russell 2000, have underperformed the S&P 500 by about 5% annually over the past decade.
PSCI, PSCT, XSVM, XSHQ and FYT led small-cap ETF gains after softer inflation data boosted rate cut hopes.