- A major late summer into early fall move had the performance of small caps nearly catching up that of the S&P 500 by the start of October. The small caps have faded since, with the Russell 2000's 8.7% YTD advance now trailing the S&P 500 by about 650 basis points.
- Over the last month, the Russell 2000 is down 2.2% while the S&P 500 has gained 1.3%.
- What gives? For one, small caps generally make most of their money in the U.S., and could be the big beneficiaries of a cut in the corporate tax rate. Those hopes are fading, or at least set to be delayed. Then there's earnings, and small caps have reported an average decline of 1%, according to BAML, versus a 6% gain for larger caps.
- ETFs: IWM, TZA, TNA, IJS, VB, IJR, VBR, UWM, VBK, SCHA, SLY, RVT, IWN, IWO, EES, TWM, URTY, RWJ, IJT, RWM, SRTY, FFTY, VTWO, SLYG, RZV, VIOO, SLYV, SAA, JKL, VIOG, RZG, VIOV, RCG, VTWG, SBB
- Now read: The Time Long Past For Stocks
Original article