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.
The current market environment, characterized by easing inflation fears and a potential shift in Federal Reserve policy toward lower interest rates, is a favorable backdrop for small cap stocks.
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.
After an epic week where only a few sectors plus the S&P 500 and NASDAQ shone, it turns out that it's the calendar price range that has the final say (read last week's articles here). At least for now.
Looking for broad exposure to the Small Cap Blend segment of the US equity market? You should consider the iShares Russell 2000 ETF (IWM), a passively managed exchange traded fund launched on 05/22/2000.
Synchronizing investment schedules with dividend payments allows for better planning of expenditures and reinvestment strategies. So, the more often the cash comes in, the better. In the piece, I discuss two high-yielding and weekly-paying ETFs that can do the thing in a relatively prudent fashion.
Much credit goes to large-caps for pulling the broad market out of April's sell-off abyss. But traders looking for other plays this summer may want to consider downsizing with small- and midcap plays.
Small-cap stocks, as indicated by the Russell 2000 Index, have lagged their bigger peers so far this year. Small-cap exchange-traded fund (ETF) iShares Russell 2000 IWM is down about 6.2% this year versus gains of about 1% in the S&P 500 and 1.9% in the Nasdaq-100 ETF (QQQ) and 0.1% losses in the Dow Jones.