Worst Performance in a Decade Spurs $1.8 Billion Small-Cap Bet
- iShares Russell 2000 ETF attracts most cash in 10 months
- Monthly inflow comes as small caps have lagged drastically
This article is for subscribers only.
With the relative performance of smaller companies near its worst in a decade, exchange-traded fund investors are going bottom fishing.
The $44 billion iShares Russell 2000 ETF, which trades under the ticker IWM, has attracted more than $1.8 billion in July, the most for any month since September, data compiled by Bloomberg show. While the most popular large-cap benchmarks have all touched record highs, the Russell 2000 remains roughly 10% below last year’s peak -- pushing a ratio of small- versus large-company stock prices to the lowest since the financial crisis.