The operative word in that headline is “some” because it must be noted some small-cap exchange traded funds have delivered impressive returns this year, but broadly speaking, smaller stocks have been disappointed.
Enter the phrase “small-cap ETFs strong dollar” into a search engine and you'll likely find plenty of articles from credible sources espousing the virtues of small-caps in a strong dollar environment. The theory is that smaller companies should thrive when the dollar rises because these companies generate the bulk of their revenue within the confines of U.S. borders.
Well, that has been a theory for sure this year, but far from a law. The iShares Russell 2000 ETF (NYSE: IWM) and the iShares Core S&P Small-Cap ETF (NYSE: IJR) are up an average of 1.6 percent, barely more than half the 2.5 percent returned by the S&P 500. This is a glaring ...
/www.benzinga.com/trading-ideas/long-ideas/15/08/5758056/some-small-cap-etfs-have-been-duds-this-year alt=Some Small-Cap ETFs Have Been Duds This Year>Full story available on Benzinga.com
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