With global equities rallying across the board on early Monday trading and with the SPX and NDX pivoting above record closing highs for the time being, we are seeing inflows in the largest U.S. Small-Cap Equity ETF, IWM (iShares Russell 2000, Expense Ratio 0.20%, $37.4 billion in AUM).
The fund has reeled in north of $1 billion in recent sessions via creation flows, but year-to-date it has struggled a bit in losing a net of about $1.9 billion in redemptions.
Even though Large-Caps are trading at record highs at the moment, the Small-Cap Russell 2000 is still about 2.6% off of its July highs so the recent IWM buyers seem to believe that Small-Caps have more room to run here (the fund is trading above its 50 day MA today for the first time in five trading sessions).
Not only are we watching IWM, being the largest fund in the segment, but IJR (iShares Core S&P Small-Cap, Expense Ratio 0.07%) which is no slouch with over $30 billion in assets under management in its own right. Similar to IWM, the fund is soaring today but still well off of its late July highs.
TNA (Direxion Daily Small Cap Bull 3X, Expense Ratio 1.09%) of course comes to mind when we see bullish looking flows in Small-Caps, as do several other prominent offerings in the space including VB (Vanguard Small Cap, Expense Ratio 0.06%), SCHA (Schwab U.S. Small-Cap, Expense Ratio 0.05%), and PRFZ (PowerShares FTSE RAFI 1500, Expense Ratio 0.39%).
The iShares Russell 2000 Index ETF (NYSE:IWM) was trading at $140.64 per share on Monday morning, up $1.42 (+1.02%). Year-to-date, IWM has gained 5.05%, versus a 12.31% rise in the benchmark S&P 500 index during the same period.
Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.
Paul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.
He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.