ETFs & Mutual Funds
Small-Cap ETF Loses Billions as Great Stock Rotation Fizzles
- Investors yank money from IWM small-cap fund amid selloff
- Small-cap firms had briefly been in favor amid great rotation
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What had been touted as Wall Street’s big rotation into smaller firms sputtered just as quickly as it started.
The same stocks that were for weeks finally seeing greater investor interest are now suffering a mass exodus as investors recalibrate their expectations for US economic growth. Amid a rocky week for equities, traders pulled $2.6 billion from the iShares Russell 2000 ETF (ticker IWM) in the five days through Friday, the most in nearly three years, according to data compiled by Bloomberg. And many are betting that the worst of the selloff lies ahead — short interest as a percentage of shares outstanding on the fund has spiked to its highest level since December, according to data from IHS Markit Ltd.