iShares Core S&P Small-Cap ETF (ARCA: IJR)

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The Fund seeks to track the investment results of the S&P SmallCap 600; the Underlying Index, which measures the performance of the small-capitalization sector of the U.S. equity market, as determined by S&P Dow Jones Indices LLC; the Index Provider or SPDJI.

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The <a href="https://www.benzinga.com/topic/russell-2000-index">Russell 2000 Index</a> has been showing signs of life in 2024, breaking out from a long-standing base and closing in on targets near 2450. 
According to JPMorgan analyst Jason Hunter, small-cap stocks may finally be ready to outperform their mega-cap tech peers. This may be good news for investors in the iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>), the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) and the Vanguard Small Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>)
But will this shift be the dawn of a new era, or just a fleeting moment in the spotlight?
Read Also: <a href="https://www.benzinga.com/markets/equities/24/10/41364980/russell-2000-poised-for-major-technical-breakout-analyst-eyes-a-trend-reversal-in-favor-of-small">Russell 2000 Poised For Major Technical Breakout: Analyst Eyes &#8216;A Trend Reversal In Favor Of Small Caps Outperforming&#8217; S&amp;P 500</a>
<h2 class="wp-block-heading">Russell 2000 Sets Bullish Targets</h2>
Hunter points to a "bullish pattern progression" forming in 2024 as the Russell 2000 climbed from a multi-quarter base. Small caps have broken through the 2282-2299 resistance zone, making 2432-2486 the next short-term goal, and the move has shown no signs of losing steam yet. The recent rally in small-cap stocks, especially in the Russell 2000 Index, seems to be moving closer to 2021 cycle highs, which could mean a big shift in market dynamics.
For now, the index stays decisively bullish. As long as it holds above the 2260 post-election breakaway gap, Hunter sees the bulls maintaining control, with potential support anchored around the 2100s, courtesy of the 200-day moving average and October's breakout zone.
<h2 class="wp-block-heading">Small Cap Vs. NASDAQ 100: A New Market Leader?</h2>
According to Hunter, the Russell 2000's recent moves aren't just about technical strength – they're about a potential regime change.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="794" height="464" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12113039/Screenshot-2024-11-12-at-9.58.55-PM.png" alt="" class="wp-image-643311" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12113039/Screenshot-2024-11-12-at-9.58.55-PM.png 794w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12113039/Screenshot-2024-11-12-at-9.58.55-PM-300x175.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12113039/Screenshot-2024-11-12-at-9.58.55-PM-768x449.png 768w" sizes="(max-width: 794px) 100vw, 794px" /></figure>
The ratio of the Russell 2000 to the NASDAQ 100 is flirting with key resistance levels. A breakout here would confirm that small caps are set to lead, while big tech, which has dominated for two years, may start to lag. 
Hunter calls this a "tentative rotation to more cyclically sensitive groups." This trend, he believes, could continue into 2025 if the Russell/NASDAQ ratio breaks out decisively this quarter.
<h2 class="wp-block-heading">What's Driving Small-Cap Strength?</h2>
Even before the election-driven rally in U.S. equities, post-September FOMC price action had already put a bullish wind at the back of small caps. Hunter notes that small caps have consistently held key supports, including the October channel and moving averages, creating a setup for continued gains.
The Russell 2000's next targets include 2585, derived from the recent ascending triangle pattern. If the index clears these levels, it could signal a more sustainable trend favoring cyclicals over mega-cap tech. But a reversal back below these supports could be a sign that the small-cap rally is just a temporary phenomenon.
<h2 class="wp-block-heading">Cyclicals In Control – For Now</h2>
Hunter's outlook stays cautiously optimistic, but he warns that the future performance of small caps versus tech hinges on whether they can maintain these breakout levels. While he sees continued bullish momentum into early 2025, Hunter emphasizes that tracking the Russell/NASDAQ ratio is key to confirming any real change in market leadership.
If this trend holds, 2024 could mark a major shift back to small caps and cyclicals. For now, though, it's up to the Russell 2000 to prove this rally is more than a fleeting burst of strength.
Read Next: 
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<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/09/40777734/exclusive-small-caps-at-most-attractive-relative-valuations-since-1990s-says-russell-inv" target="_blank" rel="noreferrer noopener">EXCLUSIVE: Small Caps At &#8216;Most Attractive Relative Valuations&#8217; Since 1990s, Says Russell Investments&#8217; Paul Eitelman</a></li>
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Russell 2000 Rallies, JPMorgan Analyst Says Small Cap May Outperform Mega-Cap Peers

On CNBC's &#8220;<a href="https://www.cnbc.com/video/2024/11/11/final-trades-salesforce-lockheed-martin-interactive-brokers-and-the-ijr.html">Halftime Report Final Trades</a>,&#8221; Rob Sechan of NewEdge Wealth named Salesforce, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) as <a href="https://www.benzinga.com/trading-ideas/movers/24/11/41857054/salesforce-shares-are-trading-higher-today-what-you-need-to-know">his final trade.</a>
The company, last week, revealed plans to hire over 1,000 employees to support the sales push for its new AI product, Agentforce, which targets the growing demand for AI-driven automation across various business functions
Jim Lebenthal of Cerity Partners picked Lockheed Martin Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>), saying the world will still be a violent place. &#8220;I know our incoming President [Donald Trump] has the noble goals of curtailing a lot of military activity overseas. I'm not sure it's really in his power,&#8221; he added.
On Oct. 29, Barclays analyst David Strauss maintained Lockheed Martin with an Equal-Weight and raised the price target from $505 to $565.
Don't forget to check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
Anastasia Amoroso of iCapital picked iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>), saying it's not too late to add to small caps.
Joseph M. Terranova of Virtus Investment Partners said Interactive Brokers Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBKR#NASDAQ">IBKR</a>) is the best performing financials stock for them.
On Oct. 15, Interactive Brokers reported quarterly earnings of $1.75 per share, which missed the analyst consensus estimate of $1.82. Quarterly revenue of $1.33 billion met the analyst consensus estimate and is an increase over revenue of $1.15 billion from the same period last year.
Price Action:
<ul>
<li>Salesforce shares gained 6.1% to close at $341.73 during Monday's session.</li>
<li>Lockheed Martin shares rose 1.1% to settle at $570.58 during Monday's session.</li>
<li>iShares Core S&amp;P Small-Cap ETF gained 1.6% during Monday's session.</li>
<li>Interactive Brokers shares gained 5.7% to close at $179.49 on Monday.</li>
</ul>
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CNBC Halftime Report Final Trades: Salesforce, Lockheed Martin, Interactive Brokers Group, iShares Core S&P Small-Cap ETF

Investors are zeroing in on what <a href="https://www.benzinga.com/general/politics">potential political outcomes</a> in the U.S. elections Tuesday could mean for the markets.
WisdomTree's Global CIO, Jeremy Schwartz and Senior Economist Jeremy Siegel have shared insights on how a Republican or Democratic win could shape sectors across both the equity and bond markets.
Here's what WisdomTree sees on the horizon.
<h2 class="wp-block-heading">Bond Market Volatility: How Policy Could Shape Yields</h2>
Siegel said bond markets are primed for volatility, with each election outcome pointing to different scenarios for interest rates and yields. A Republican sweep, accompanied by tax cuts and heightened fiscal spending, could push bond yields upward by 20 basis points or more, he said. In this scenario, investors might brace for inflationary pressures and potentially tighter monetary policy, which would counterbalance any short-term equity gains.
On the flip side, a Democratic sweep is seen as a stabilizing force for bonds, with expectations for moderated spending and pro-growth fiscal restraint. 
WisdomTree's Kevin Flanagan, head of fixed income strategy, notes that Democratic policies might offer a predictable, low-volatility environment that helps maintain steady rates and tempers inflation concerns.
A divided government could yield the "best case" for bonds, creating stability through gridlock that limits sweeping fiscal changes and curbs deficit growth.
<h2 class="wp-block-heading">Equity Market Winners: Mag 7 In Focus Under GOP, Infrastructure &amp; Clean Energy For Democrats</h2>
For equity markets, each scenario presents distinct opportunities, particularly in the growth-oriented and infrastructure sectors. Under a Republican administration, WisdomTree expects an initial boost in stocks like the Magnificent Seven: (Meta Platforms Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>), Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>). 
The Magnificent Seven stocks could be driven by extended tax cuts, reduced regulation, and potential capital gains exemptions.
The Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>) provides exposure to the Magnificent Seven stocks along with other popular tech-heavy ETFs such as the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), the Vanguard Information Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>) and the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>).
This favorable backdrop for the tech-heavy sector could stimulate momentum, although Siegel cautions that rising yields might cap equity gains by pressuring valuations.
In contrast, a Democratic sweep would likely favor sectors tied to clean energy and infrastructure. With a focus on the Inflation Reduction Act, the Democratic agenda is expected to channel substantial support into solar, hydrogen and renewable energy projects. The Invesco Solar ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAN#NYSE">TAN</a>) provides exposure to solar stocks.
Read Also: <a href="https://www.benzinga.com/markets/esg/24/11/41722922/trump-vs-harris-evgo-cleveland-cliffs-plug-power-nucor-brace-for-2024-election-impact">Trump Vs. Harris: EVgo, Cleveland-Cliffs, Plug Power, Nucor Brace For 2024 Election Impact</a>
This shift would likely benefit clean energy stocks while weighing on small-cap stocks with high U.S. revenue exposure, as they would face the most significant earnings impact from higher corporate tax rates. 
Investors in clean energy ETFs such as the iShares Global Clean Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ICLN#NYSE">ICLN</a>) and First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GRID#NYSE">GRID</a>) and those invested in small-cap stocks via ETFs such as the iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>) or the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) should be wary of their holdings.
According to Wisdom Tree, Democratic leadership could also benefit international markets, as the reduced likelihood of higher tariffs might ease trade concerns and foster demand.
<h2 class="wp-block-heading">Navigating The Election Landscape</h2>
Beyond direct impacts on stocks and bonds, WisdomTree suggests that a blend of strategies, such as private credit, inflation hedges like gold, and international exposure with currency hedging, may help investors manage market uncertainty.
Trade policies, inflation, and the Federal Reserve's trajectory are all likely to play roles in shaping post-election strategies, underscoring the value of a diversified approach.
As the U.S. awaits the election results, WisdomTree's analysis highlights a divided outlook for investors. Whether the election ushers in policies that lift the Magnificent Seven stocks or bolsters the bond market, each scenario brings unique opportunities and risks to watch in the weeks ahead.
Read Next: 
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41746843/bond-market-fear-gauge-soars-to-1-year-high-ahead-of-us-election-results-bond-vigil">Bond Market Fear Gauge Soars To 1-Year High Ahead Of US Election Results: &#8216;Bond Vigilantes Have Been Voting Early&#8217;</a></li>
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Republican Win Likely To Lift Magnificent 7 Stocks, Democratic Sweep 'Better For Bonds,' Says WisdomTree

As the election season heats up, certain ETFs could experience significant impacts if Donald Trump secures the presidency. These funds span various sectors, including cryptocurrencies, energy, and small-cap stocks.
One of the sectors that investors need to keep an eye out for is cryptocurrency. Favorable policies and regulatory frameworks could emerge, boosting the crypto industry. A recent analysis suggests Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41710293/bitcoin-could-hit-90-000-if-trump-wins-hold-50-000-floor-under-harris-bernstein">could reach $90,000</a> if Trump wins, highlighting the importance of crypto policy in this election. Bitcoin-based ETFs like iShares Bitcoin Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBIT#NASDAQ">IBIT</a>), Grayscale Bitcoin Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GBTC#NYSE">GBTC</a>) and CoinShares Valkyrie Bitcoin Miners ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WGMI#NASDAQ">WGMI</a>) might see benefits if Trump continues his supportive stance on cryptocurrencies and blockchain technology.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41704904/trump-whale-losing-grip-on-polymarket-odds-economist-justin-wolfers-wonders-whats-behind-t?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">&#8216;Trump Whale&#8217; Losing Grip On Polymarket Odds? Economist Justin Wolfers Wonders What&#8217;s Behind The Latest Change</a>
<a href="https://www.benzinga.com/markets/equities/24/10/41213583/what-a-trump-win-could-mean-for-financial-energy-stocks-lessons-from-2016">The energy sector, </a>often backed by Republicans, could also thrive under a Trump administration. Deregulation and supportive policies for fossil fuels such as oil, natural gas, and coal could enhance the attractiveness of energy stocks. Trump's 2016 victory was also favorable for the oil and coal industries since he supported deregulating the energy sector and prioritizing American energy production. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) is among the largest ETFs in this sector and might see an uptick if the former president returns.
Small-cap companies, particularly those focused on domestic markets, could benefit from reduced regulation and favorable corporate taxes. The iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>) may see positive performance under such conditions.
However, Trump&#8217;s proposed corporate tax cuts have<a href="https://www.benzinga.com/startups/24/10/41291635/are-trumps-proposed-corporate-tax-cuts-the-key-to-unleashing-a-stock-market-boom-heres-what-history"> sparked significant discussion</a>. He is advocating for a reduction of the federal corporate tax rate from 21% to 15%. Supporters argue that past economic gains have followed similar tax reductions while others say that lowering the corporate tax rate to 15% could increase the U.S. GDP by 0.4% and potentially create approximately 93,000 full-time jobs.
Price Action: As per <a href="https://pro.benzinga.com">Benzinga Pro</a>, during pre-market session on Monday, IBIT was trading 0.48% lower, WGMI was down by 0.52% and GBTC was down by 0.44%. Comparatively, XLE was faring slightly better, trading 0.80% higher. Meanwhile, IJR was up 0.05%. 
Read Next: 
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Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
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Donald Trump's Return To White House Could Propel These ETFs To New Highs

With the launch of the Amplify Small-Mid Cap Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMAP#NYSE">SMAP</a>), investors have a fresh opportunity to tap into the often-overlooked sweet spot of the stock market: small- <a href="https://www.benzinga.com/money/best-mid-cap-stocks">and mid-cap companies</a>.
SMAP's timing couldn't be better, as small- and mid-caps have quietly outperformed their larger peers this year, and investors are starting to take notice.
Small-cap stocks, represented by the iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>), are up 6.97% year-to-date and 29.72% over the past year, while mid-caps, tracked by the iShares Core S&amp;P Mid-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJH#NYSE">IJH</a>), have gained a solid 13.39% YTD and 32.56% over the past year. 
Amplify's new ETF sits right in the middle of these two segments, offering investors a hybrid approach to capitalize on both growth and value opportunities.
Read Also: <a href="https://www.benzinga.com/news/24/09/40922597/russell-2000-outpaces-s-p-500-as-small-caps-anticipate-feds-interest-rate-move">Russell 2000 Outpaces S&amp;P 500 As Small Caps Anticipate Fed&#8217;s Interest Rate Move</a>
<h2 class="wp-block-heading">Small &amp; Mid-Caps In The Spotlight</h2>
Why now? Small- and mid-caps often thrive when interest rates fall, as lower borrowing costs boost their ability to fund expansion and grow earnings. 
With investors eyeing potential rate cuts from the Federal Reserve, Amplify is betting that its actively managed SMAP ETF—helmed by seasoned pros at Curi RMB Capital—will capture those inefficiencies and uncover high-growth gems before they run too far.
Small-caps, in particular, tend to have more room for growth but are often overlooked in favor of larger stocks. 
Mid-caps, meanwhile, offer the perfect balance between growth potential and stability. SMAP gives traders exposure to both categories, allowing them to capitalize on companies at different stages of their life cycles.
<h2 class="wp-block-heading">Why Amplify's SMAP Stands Out</h2>
For traders, the implications are clear: SMAP offers exposure to small- and mid-cap companies in a flexible way, avoiding the rigidities of passive indexing. 
As Amplify's CEO Christian Magoon puts it, SMAP brings &#8220;professionally selected companies&#8221; to the forefront—no forced selling when companies grow, no blind index rules. Just smart, nimble investing. 
Plus, in a rate-cutting environment, small- and mid-caps could become prime beneficiaries, making SMAP's launch all the more timely.
Read Next: 
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The Federal Reserve&#8217;s recent 50 basis point rate cut marks a notable shift in monetary policy, with significant implications for both the U.S. economy <a href="https://www.benzinga.com/markets/emerging-markets">and global markets</a>. 
Fund managers and strategists are weighing in on what this means for investors and what to expect next.
<h2 class="wp-block-heading">KraneShares: Fed's Rate Cut Signals A Cycle</h2>
Brendan Ahern, CIO of KraneShares, believes the Fed's 50 bps rate cut is the beginning of a larger easing cycle.
According to Ahern, &#8220;Another 50 basis point reduction is expected later this year, with an additional 100 basis points projected for 2025.&#8221; 
While some fear the possibility of a mild recession, Ahern points out that the U.S. economy is still displaying resilience. "Unemployment remains low, inflation is easing, consumer spending is holding strong, and corporate profits are generally stable," he notes, suggesting the potential for a "soft landing" instead of a hard downturn.
<h2 class="wp-block-heading">Russell Investments: Softer Stance Could Boost Markets</h2>
Paul Eitelman, chief investment strategist at Russell Investments, shares a more tempered yet optimistic view, noting that the Fed&#8217;s focus is shifting from aggressive inflation control to stabilizing economic growth.
&#8220;This marked the start of a long-awaited easing cycle,&#8221; he said, adding that the Fed is aiming to prevent major damage to the labor market.
Eitelman expects the Fed to maintain a steady pace of cuts—25 bps at each meeting through 2025—to balance risks. Should this strategy succeed, sectors like real estate and small caps could benefit from lower rates and a stabilizing economy.
The Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) and the SPDR Real Estate Select Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) are two of the most popular real estate equity tracking ETFs in the U.S. 
On the small-cap front, the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) and the iShares Russell 2000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWO#NYSE">IWO</a>) are two popular ETFs tracking the Russell 2000 Index &#8211; a popular benchmark for small-cap equity in the U.S. The iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>) and the Vanguard Small Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>) are two other popular small-cap equity-tracking ETFs.
Don't miss out on this unparalleled opportunity:
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<li><a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Register now to secure your spot at Benzinga's Largest SmallCap Conference ever in Chicago!</a></li>
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<h2 class="wp-block-heading">WisdomTree&#8217;s Senior Economist: &#8220;I Am Surprised"</h2>
WisdomTree senior economist Professor Jeremy Siegel offered a candid take, expressing surprise at the Fed's bold move. &#8220;I&#8217;ll have to say, I am surprised. I was saying of course I wanted 50, you know I even wanted more, but I didn&#8217;t think he was going to do it.&#8221;
Siegel&#8217;s analysis also highlights the Fed's response to catching up with inflation control. "They realize that they were a bit behind the curve and now they are catching up," he said.
Siegel believes the rate cuts lower the probability of a recession, helping sustain economic strength.
Read Also: <a href="https://www.benzinga.com/markets/equities/24/09/40995794/key-stock-market-dates-predicting-major-swings-revealed-ahead-of-2024-election-according-to-bank">Key Stock Market Dates Predicting Major Swings Revealed Ahead Of 2024 Election, According To Bank Of America</a>
<h2 class="wp-block-heading">Emerging Markets: A Beneficiary Of Lower Rates?</h2>
KraneShares' Ahern also highlights the potential boost for emerging markets. A weaker U.S. dollar resulting from lower rates could &#8220;strengthen emerging market currencies,&#8221; and increased capital inflows may follow. Investors in the iShares Core MSCI Emerging Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEMG#NYSE">IEMG</a>) and the Vanguard FTSE Emerging Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VWO#NYSE">VWO</a>) are well-positioned to benefit from the strengthening of emerging market equities.
Chinese assets, in particular, are attracting global investors as they trade at low valuations. Investors in the iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>) and the KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) are positioned to benefit from any increase in fund flows towards Chinese equities.
Ahern advises closely watching both U.S. policy shifts and China's economic recovery for potential opportunities in this space.
While the Fed's aggressive 50 bps cut has caught many by surprise, fund managers and strategists agree it may provide much-needed relief to financial markets, with growth sectors and emerging markets standing to benefit from the shift.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/bonds/24/09/40993114/companies-run-to-bond-markets-after-last-weeks-fed-rate-cut">Companies Run To Bond Markets After Last Week&#8217;s Fed Rate Cut</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Asia

Sector ETFs

Emerging Markets

Emerging Market ETFs

Federal Reserve

IEMG

KWEB

MCHI

XLRE

Fed 'Catching Up' With 50-Point Rate Cut: Fund Managers Expect Gains In Emerging Markets, Small Caps

On CNBC's &#8220;<a href="https://www.cnbc.com/video/2024/09/19/final-trades-target-home-depot-and-the-ijr.html">Halftime Report Final Trades</a>,&#8221; Stephanie Link of Hightower named Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) as her final trade.
On Thursday, Target tapped PepsiCo, Inc's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) Jim Lee as its CFO and a member of its leadership team, effective Sept. 22. Lee brings over 25 years of experience in finance, strategy and more at PepsiCo. 
Lee will take over from COO Michael Fiddelke. Lee has served on multiple boards during his PepsiCo career, including Tropicana Brands Group and Celsius Holdings.
Kevin Simpson of Capital Wealth Planning said The Home Depot, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) would be a tremendous beneficiary of lower interest rates. The company has a dividend yield of 2.3%, he added.
Home Depot recently agreed to a settlement of almost $2 million to resolve allegations that it overcharged customers at checkout. The lawsuit, filed by prosecutors from six California counties, accused the retailer of "scanner violations," where the prices at checkout were higher than the advertised prices. The case was brought to the San Diego County Superior Court, reported NBC News.
Don't forget to check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
Jim Lebenthal of Cerity Partners picked iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>) as his final trade.
Price Action:
<ul>
<li>Target gained 1.9% to close at $156.49 during Thursday's session.</li>
<li>Home Depot shares gained 1.7% to settle at $390.34 on Thursday.</li>
<li>iShares Core S&amp;P Small-Cap ETF gained 2% during Thursday's session.</li>
</ul>
Check This Out: 
<ul>
<li><a href="https://www.benzinga.com/markets/24/09/40948972/coinbase-global-electronic-arts-and-2-other-stocks-executives-are-selling">Coinbase Global, Electronic Arts And 2 Other Stocks Executives Are Selling</a></li>
</ul>
Image: Shutterstock

Target, Home Depot And More On CNBC's 'Final Trades'

CNBC Halftime Report Final Trades: Target, The Home Depot, iShares Core S&P Small-Cap ETF

On CNBC's &#8220;<a href="https://www.cnbc.com/video/2024/09/13/final-trades-tesla-interactive-brokers-suncor-energy-and-the-ijr.html">Halftime Report Final Trades</a>,&#8221; Bryn Talkington of Requisite Capital Management said Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) continues to have some of the highest call premium in the market.
Tesla has made its 100 millionth 4680 cell to be used inside its Cybertruck vehicle, the company said on Saturday. The Austin, Texas-based company announced the milestone on the social media platform X. 
"Produced our 100 millionth 4680 cell across all our factories!," the company wrote, with an adjoining image of a Tesla-made humanoid robot holding up the<a href="https://www.benzinga.com/news/24/09/40867760/elon-musk-reacts-as-tesla-makes-100-millionth-4680-cells-enough-to-produce-over-73-500-cybertrucks"> landmark 100 millionth cell.</a>
Tesla CEO Elon Musk commented on the news via X.com. See below.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Congratulations Tesla cell team! <a href="https://t.co/oK4WaeWZ6p">https://t.co/oK4WaeWZ6p</a>
&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1835124037934367098?ref_src=twsrc%5Etfw">September 15, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/news/24/09/40873304/teslas-cybertruck-sales-in-july-nearly-matched-those-of-all-over-ev-trucks-combined-report">Tesla&#8217;s Cybertruck Sales In July Nearly Matched Those Of All Over EV Trucks Combined</a>
Joseph M. Terranova of Virtus Investment Partners said look for Interactive Brokers Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBKR#NASDAQ">IBKR</a>) to push well above its May high level of $129.
On Sept. 9, UBS analyst Brennan Hawken maintained Interactive Brokers with a Buy rating and raised the price target from $145 to $155.
Don't forget to check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
Rob Sechan of NewEdge Wealth picked Suncor Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SU#NYSE">SU</a>), which is up 15% for the year, but 15% off its high level.
On Sept. 13, RBC Capital analyst Greg Pardy reiterated Suncor Energy with an Outperform and maintained a C$67 price target.
Jim Lebenthal of Cerity Partners named iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>) as his final trade.
Price Action:
<ul>
<li>Tesla gained 0.2% to close at $230.29 during Friday's session.</li>
<li>Interactive Brokers shares gained 3.6% to settle at $128.07 on Friday.</li>
<li>Suncor Energy shares rose 0.4% to close at $36.44.</li>
<li>iShares Core S&amp;P Small-Cap ETF gained 2.6% during Friday's session.</li>
</ul>
Check This Out:<a href="https://www.benzinga.com/markets/24/09/40860420/jim-cramer-hold-on-to-builders-firstsource-heres-the-problem-with-viking-therapeutics"> </a>
<ul>
<li><a href="https://www.benzinga.com/markets/24/09/40860420/jim-cramer-hold-on-to-builders-firstsource-heres-the-problem-with-viking-therapeutics">Jim Cramer: &#8216;Hold On&#8217; To Builders FirstSource, &#8216;Here&#8217;s The Problem&#8217; With Viking Therapeutics</a></li>
</ul>
Image: Courtesy of Tesla

Tesla, Interactive Brokers, Suncor Energy And More: CNBC's 'Final Trades'

CNBC Halftime Report Final Trades: Tesla, Interactive Brokers Group, Suncor Energy, iShares Core S&P Small-Cap ETF

Small cap stocks are poised for a strong rally, according to Kevin Dreyer, co-CIO of Value at Gabelli Funds.
In a recent CNBC <a href="https://www.youtube.com/watch?v=k9u3gs7uztA">interview</a>, Dreyer, who oversees the Gabelli Asset Fund (GABAX), emphasized that small caps have &#8220;a long room to run&#8221; and are increasingly becoming an attractive option for investors looking to diversify their portfolios.
<h1 class="wp-block-heading">From Large Caps To Small Caps: The Shift Began In Early July</h1>
Dreyer noted that while growth stocks have dominated the markets for some time, a shift began to emerge in early July. 
"We are long-time value investors, and growth has really led the markets for some time now. But we started to see this rotation in early July," Dreyer explained.
This change is closely tied to recent actions by the Federal Reserve, which will soon start cutting interest rates. "Now this was in line with what we all are seeing now — the Fed finally cutting rates, and we&#8217;re seeing small-caps and value start to do better."
Read Also: <a href="https://www.benzinga.com/news/24/08/40535630/small-caps-set-to-lead-their-large-cap-brothers-for-rest-of-2024-says-market-strategist">Small Caps Set To &#8216;Lead Their Large Cap Brothers&#8217; For Rest Of 2024, Says Market Strategist</a>
<h1 class="wp-block-heading">Small Caps: Trading At &#8216;Massive Discount&#8217; To Large Cap Counterparts</h1>
The renewed interest in small caps comes as they are trading at a substantial discount compared to their large-cap counterparts. 
"Right now, they trade at a massive discount to their large-cap peers," Dreyer highlighted, suggesting that this could be an ideal time for investors to consider adding small caps to their portfolios.
Dreyer's optimistic view is also supported by the recent performance of the Russell 2000, a key index for small-cap stocks, which seems on track to close higher. Popular ETFs tracking the index closely include the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), the Vanguard Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTWO#NYSE">VTWO</a>) and the Avantis U.S Small Cap Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVSC#NYSE">AVSC</a>).
Though they don&#8217;t track the Russell 2000 index, the iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>) and the Vanguard Small Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>) are other popular ways to get investment exposure to small-cap equity.
<h1 class="wp-block-heading">Small Caps Still Have A &#8216;Long Way To Go&#8217;</h1>
"By and large, we&#8217;ve been buying more small caps lately, and we think they&#8217;ve got a long way to go," Dreyer added, indicating that the current market environment could present a lucrative opportunity for those looking to capitalize on undervalued assets.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/08/40447799/small-caps-soar-3-russell-2000-stocks-doubling-investor-wealth-in-2024">Small Caps Soar: 3 Russell 2000 Stocks Doubling Investor Wealth In 2024</a></li>
</ul>
Don&#8217;t miss the opportunity to dominate in a volatile market at the&nbsp;<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference on Oct. 9-10, 2024</a>, at the Chicago Marriott Downtown Magnificent Mile.
Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders.
<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Secure your spot and get your tickets today</a>!
Photo: IConcept via Shutterstock

AVSC

VTWO

Russell 2000 Stocks 'Trading At A Massive Discount' To Large Caps: Gabelli Funds' Kevin Dreyer

While the titans of tech may dominate headlines, a quieter revolution is brewing among <a href="https://www.benzinga.com/trading-ideas/small-cap-analysis">small-cap stocks</a>. 
According to Ryan Detrick, chief market strategist at Carson Group LLC, small caps are not only staging a remarkable rally but could soon surpass their larger rivals.
Detrick has thrown a spotlight on this trend with his recent tweet, noting that &#8220;The past 12 months small caps are up 18%.&#8221;
&#8220;Yes, they aren&#8217;t up as much as large cap tech, but we continue to expect them to do quite well the rest of &#8217;24 and likely lead their lg cap brothers,&#8221; he said in a post.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The past 6 months small caps are up 9%. The past 12 months small caps are up 18%. The past 5 yrs small caps are up 50%. Yes, they aren&#39;t up as much as large cap tech, but we continue to expect them to do quite well the rest of &#39;24 and likely lead their lg cap brothers.
&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1826996780610802069?ref_src=twsrc%5Etfw">August 23, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
<h2 class="wp-block-heading">Small Cap ETFs Showing Strength</h2>
Here's how the small-cap ETFs are faring, underscoring the bullish sentiment:
<ul>
<li>iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>): Up 8% YTD, this ETF has delivered a 9.2% gain over the past six months and a solid 17% over the past year. Its five-year return stands at an impressive 57%.</li>
<li>iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>): This ETF boasts a 10.3% YTD increase and a 18.5% rise over the past year, with a five-year gain of 51%.</li>
<li>Vanguard Small Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>): With an 10% YTD performance, VB has risen 18.3% in the past year and 56.6% over five years.</li>
</ul>
These strong performances highlight the potential in the small-cap sector. For those looking to explore further opportunities and navigate a volatile market, the <a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/">Benzinga SmallCAP Conference</a> on Oct. 9-10 in Chicago offers a chance to gain valuable insights and connect with industry leaders.
Read Also: <a href="https://www.benzinga.com/news/24/08/40515774/international-small-cap-etf-reaches-52-week-high-leaving-investors-wondering-whats-next">International Small-Cap ETF Reaches 52-Week High, Leaving Investors Wondering What&#8217;s Next</a>
<h2 class="wp-block-heading">What This Means for Investors?</h2>
Despite the dominance of large-cap tech stocks, small caps are carving out their own success story. Detrick's insight hints at an exciting year ahead for these nimble players, suggesting they could outpace their larger counterparts.
For investors, the potential leadership of small caps in 2024 could present a significant opportunity. As Detrick suggests, small-cap stocks are not only catching up, but could outpace their larger counterparts in the near future. This shift could translate into substantial gains for those who pivot to small-cap investments now.
ETFs like IJR, IWM, and VB offer diversified exposure to this segment, reflecting their strong recent performance and potential for continued growth. 
Investors looking to capitalize on this trend might consider increasing their allocation to small-cap funds or individual small-cap stocks, balancing their portfolios with these high-growth opportunities.
As we move into the latter half of 2024, small-cap stocks may have the potential to outperform, highlighting that market size isn&#8217;t always the key factor in investing.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/08/40447799/small-caps-soar-3-russell-2000-stocks-doubling-investor-wealth-in-2024">Small Caps Soar: 3 Russell 2000 Stocks Doubling Investor Wealth In 2024</a></li>
</ul>
Don't miss the opportunity to dominate in a volatile market at the&nbsp;<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference on Oct. 9-10, 2024</a>, at the Chicago Marriott Downtown Magnificent Mile.
Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you're a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders.
<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Secure your spot and get your tickets today</a>!
Image created using artificial intelligence via Midjourney.

Small Caps Set To 'Lead Their Large Cap Brothers' For Rest Of 2024, Says Market Strategist

Making its debut on 12/30/2016, smart beta exchange traded fund ALPS O&#39;Shares U.S. Small-Cap Quality Dividend ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/ousm#BATS">OUSM</a>) provides investors broad exposure to the Style Box - Small Cap Blend category of the market.
<h2>What Are Smart Beta ETFs?</h2>
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it&#39;s possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
<h2>Fund Sponsor &amp; Index</h2>
The fund is managed by Alps. OUSM has been able to amass assets over $666.01 million, making it one of the average sized ETFs in the Style Box - Small Cap Blend. This particular fund seeks to match the performance of the FTSE Russell US Qual / Vol / Yield Factor 3% Capped Index before fees and expenses.
The OShares U.S. Small-Cap Quality Dividend Index is designed to reflect the performance of publicly-listed small-capitalization dividend-paying issuers in the United States exhibiting high quality, low volatility and high dividend yields.
<h2>Cost &amp; Other Expenses</h2>
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.48%, making it one of the more expensive products in the space.
OUSM&#39;s 12-month trailing dividend yield is 1.31%.
<h2>Sector Exposure and Top Holdings</h2>
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund&#39;s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 34.40% of the portfolio, the fund has heaviest allocation to the Financials sector; Industrials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Juniper Networks Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnpr#NYSE">JNPR</a>) accounts for about 2.02% of the fund&#39;s total assets, followed by Tradeweb Markets Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tw#NASDAQ">TW</a>) and Encompass Health Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ehc#NYSE">EHC</a>).
Its top 10 holdings account for approximately 19.45% of OUSM&#39;s total assets under management.
<h2>Performance and Risk</h2>
The ETF has gained about 8.67% so far this year and is up about 16.66% in the last one year (as of 08/15/2024). In the past 52-week period, it has traded between $33.36 and $44.13.
The ETF has a beta of 1.05 and standard deviation of 16.86% for the trailing three-year period. With about 107 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
ALPS O&#39;Shares U.S. Small-Cap Quality Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 2000 ETF (ARCA:IWM) tracks Russell 2000 Index and the iShares Core S&amp;P Small-Cap ETF (ARCA:IJR) tracks S&amp;P SmallCap 600 Index. IShares Russell 2000 ETF has $63.97 billion in assets, iShares Core S&amp;P Small-Cap ETF has $81.88 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Small Cap Blend.
<a href="https://www.zacks.com/stock/news/2322377/is-alps-o-shares-u-s-small-cap-quality-dividend-etf-ousm-a-strong-etf-right-now?cid=CS-BENZ-FT-smart_beta_etf-2322377">To read this article on Zacks.com click here.</a>

Large Cap

Dividends

JNPR

O'Shares FTSE Russell Small Cap Quality Dividend ETF

OUSM

Is ALPS O'Shares U.S. Small-Cap Quality Dividend ETF a Strong ETF Right Now?

Investors are increasingly bullish on small-cap stocks, driven by optimistic projections for the interest-rate-sensitive segment of the market to thrive as the market approaches the onset of a <a href="https://www.benzinga.com/topic/interest-rates">Federal Reserve rate cut cycle.</a>
July has been a pivotal month, as small caps significantly outperformed large caps, especially in the tech sector, which dominated during the nearly two-year bull market.
The Russell 2000 index has surged nearly 9% month-to-date compared to a 3.6% decline for the tech-heavy Nasdaq 100 as of July 25.
The performance gap of nearly 13 percentage points in favor of the Russell 2000 over tech marks the best month for the &#8220;long small cap, short tech&#8221; trade since April 2002, highlighting the strength and speed of the ongoing market rotation.
<h3 class="wp-block-heading">Chart: It&#8217;s The Best Month In Over 2 Decades For The &#8216;Long Russell 2000, Short Nasdaq 100&#8217; Trade</h3>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="487" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/25153006/image-43-1024x487.png" alt="" class="wp-image-457807" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/25153006/image-43-1024x487.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/25153006/image-43-300x143.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/25153006/image-43-768x365.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/25153006/image-43-1536x730.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/25153006/image-43.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Strong Inflows Into Small-Cap ETFs</h3>
The impressive performance of small-cap stocks has been mirrored by significant inflows into major small-cap-focused ETFs. 
The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), one of the largest ETFs tracking the U.S. small-cap index, saw over $6 billion in net inflows this month, marking the highest influx of 2024 to date, according to data from Etfdb.com.
Several other small-cap ETFs have also drawn considerable investor funds this month:
<ul>
<li>iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>): $645 million in net inflows</li>
<li>Avantis U.S. Small Cap Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVUV#NYSE">AVUV</a>): $553.28 million in net inflows</li>
<li>Invesco S&amp;P SmallCap Momentum ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSMO#NYSE">XSMO</a>): $350 million in net inflows</li>
<li>SPDR Portfolio S&amp;P 600 Small Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPSM#NYSE">SPSM</a>): $188 million in net inflows</li>
</ul>
Year-to-date, the Vanguard Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>) and the Pacer US Small Cap Cash Cows 100 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CALF#NYSE">CALF</a>) have attracted the most investor money, with $3.1 billion and $2.9 billion, respectively.
<h3 class="wp-block-heading">A Different Perspective</h3>
Despite the strong performance of the Russell 2000 index and the substantial inflows into small-cap ETFs, some experts urge caution.
&#8220;Investors and analysts are hopeful that the end of the Federal Reserve's tightening cycle will bring better days for smaller companies, particularly those that rely on debt to fund operations. We're not convinced,&#8221; said veteran Wall Street investor Ed Yardeni in a note.
Larger companies, especially in the technology sector, possess advantages that smaller firms cannot easily replicate, he said. 
For instance, major tech firms are sitting on significant cash reserves, enabling them to fund substantial capital expenditures and R&amp;D budgets, maintaining their competitive edge.
To give some examples, Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) sits on a stockpile of cash equalling $111 billion at the end of last quarter. Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) have cash reserves of $87 billion and $80 billion, respectively.
Their financial flexibility allows for strategic acquisitions of smaller companies with important new technology or business lines. Microsoft&#8217;s $10-billion investment in OpenAI, the developer of ChatGPT, last year exemplifies this capability.
Yardeni suggests the fastest-growing, highest-potential companies may have already partnered with large-cap firms or private equity investors.
&#8220;That, of course, implies that the laggards are left to trade in the S&amp;P 400 and S&amp;P 600—suggesting that investors will return to larger-cap alternatives sooner rather than later,&#8221; he said.
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Interested in learning more about small-cap stocks and ETFs? Then you don't want to miss Benzinga Small Cap Conference, Oct. 10 in Chicago. <a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Click here</a> for more information.
Photo created using artificial intelligence via MidJourney.

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Investors Go All In On Small Caps, Pour Over $6 Billion Into Russell 2000 ETF This Month: They 'Will Return To Larger-Cap Alternatives,' Veteran Analyst Says

Fabrinet (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FN#NYSE">FN</a>) is quietly becoming a crucial player in <a href="https://www.benzinga.com/topic/artificial-intelligence">the AI industry</a>.
What Happened: This original equipment manufacturer (OEM) is catching investor attention thanks to its strategic partnership with Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>). 
Fabrinet, based in the Cayman Islands, is known for its state-of-the-art optical connections and networking cables. It recently became a vital partner within Nvidia's data center operations.
With AI applications demanding increasingly high data rates, Fabrinet&#8217;s role in producing cutting-edge optical communication products has become indispensable. Datacom revenues, 42% of Fabrinet&#8217;s quarterly sales, surged by 150% year-over-year. This illustrates the significant impact of the Nvidia partnership on Fabrinet&#8217;s bottom line.
Risks: Nvidia, a significant customer, is moving towards copper-based solutions for its latest GPUs.
Nvidia&#8217;s recent transition could impact Fabrinet&#8217;s core business — providing optical communication products. 
Such a shift may reduce the demand for Fabrinet's high-precision optical components, potentially affecting its revenue streams from the data center segment. 
While Fabrinet&#8217;s diversified portfolio and strong foothold in the AI sector provide a buffer, any substantial decrease in orders from Nvidia could put pressure on the company&#8217;s growth trajectory and financial performance.
Read Also: <a href="https://www.benzinga.com/insights/news/24/07/39732422/heres-how-much-you-would-have-made-owning-fabrinet-stock-in-the-last-10-years">Here&#8217;s How Much You Would Have Made Owning Fabrinet Stock In The Last 10 Years</a>
Why It Matters: So far, Fabrinet's financial trajectory has been nothing short of impressive. The company&#8217;s revenues have expanded from $700 million in 2014 to $2.8 billion today.
Despite operating with relatively thin gross margins, Fabrinet has maintained healthy operating margins of about 10%.
Stock performance is equally noteworthy. Shares soared over 80% this past year, a feat that outpaces both the broader market and the tech sector. The broad market S&amp;P 500 index has gained just over 19% and the tech sector tracking Nasdaq-100 has gained just over 23%, in the past year.
This stellar rise has made Fabrinet a darling of small-cap ETFs, including the iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>) and the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) where it ranks as a top holding.
<h3 class="wp-block-heading">Why Investors Should Watch Fabrinet</h3>
Fabrinet is more than a manufacturing giant; it's an under-the-radar AI play with significant growth potential. As the company continues to ride the AI wave, its partnership with Nvidia offers a compelling growth narrative that positions Fabrinet as a key player in the AI and data center arenas. 
Investors looking for exposure to AI-driven growth should keep a keen eye on this emerging powerhouse.
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Fabrinet: The AI Secret Weapon Powering Nvidia's Data Center Boom

Jim Lebenthal of Cerity Partners picked Cisco Systems, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>) on the latest edition of CNBC's &#8220;<a href="https://www.cnbc.com/video/2024/07/12/final-trades-cisco-leidos-tjx-companies-and-the-ijr.html">Halftime Report Final Trades</a>.&#8221; 
After looking at the company&#8217;s stock chart, Lebenthal noticed there is a nine-month downtrend in the stock. 
The stock hit a low in June but reached a higher low a week ago. If the stock goes up 1 more percent, then we will have a &#8220;<a href="https://www.benzinga.com/markets/asia/24/06/39478967/cisco-very-optimistic-about-growth-in-chinese-ev-market-despite-trade-tensions">higher high,&#8221; he added</a>.
Cisco is reportedly planning to establish a cybersecurity center in Taiwan and collaborate with the local government to expand the cybersecurity workforce. The company unveiled the initiative as part of its ongoing efforts to enhance digital security infrastructure in regions facing high cyber threat <a href="https://www.benzinga.com/markets/equities/24/06/39355023/cisco-partners-with-taiwan-to-combat-cyber-threats-report">levels, reported Reuters</a>.
Kevin Simpson of Capital Wealth Planning named The TJX Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TJX#NYSE">TJX</a>) as his final trade.
On July 3, Loop Capital analyst Laura Champine maintained TJX with a Buy rating and increased the price target from $115 to $125.
Don't forget to check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
Shannon Saccocia of NB Private Wealth picked iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>).
Stephen Weiss of Short Hills Capital Partners named Leidos Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LDOS#NYSE">LDOS</a>) as his final trade.
Leidos expects to announce its second-quarter financial results on Tuesday, July 30. Analysts expect the company to report quarterly earnings at $2.27 per share, up from $1.8 per share in the year-ago period. The company projects revenue of $4.06 billion, compared to $3.84 billion a year earlier.
Price Action:
<ul>
<li>Cisco shares gained 1.3% to close at $47.38 on Friday.</li>
<li>TJX shares rose 0.3% to settle at $114.30 during Friday's session.</li>
<li>iShares Core S&amp;P Small-Cap ETF gained 1% on Friday.</li>
<li>Leidos shares gained 0.7% to close at $149.92 during Friday's session.</li>
</ul>
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CNBC Halftime Report Final Trades: JP Morgan Chase & Co., Dominion Energy, Vistra, IShares Core S&P Small-Cap ETF

RBC Capital analysts are urging caution with U.S. small-cap stocks, saying it&#8217;s best to &#8220;stay on the sidelines for now.&#8221; In a note, the investment bank highlighted a less promising near-term outlook for small caps, <a href="https://www.benzinga.com/trading-ideas/small-cap-analysis">citing several factors</a>.
<figure class="wp-block-image size-full"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="633" height="458" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/18105114/Screenshot-2024-06-18-at-8.20.47-PM.png" alt="" class="wp-image-393716" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/18105114/Screenshot-2024-06-18-at-8.20.47-PM.png 633w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/18105114/Screenshot-2024-06-18-at-8.20.47-PM-300x217.png 300w" sizes="(max-width: 633px) 100vw, 633px" /></a></figure>
<a href="https://pro.benzinga.com/dashboard" target="_blank" rel="noreferrer noopener">Chart: Benzinga Pro</a>
Related: <a href="https://www.benzinga.com/news/24/06/39357591/as-small-caps-lag-20-behind-s-p-500-reddit-user-says-market-cap-definitions-should-really-be-readjus">As Small Caps Lag 20% Behind S&amp;P 500, Reddit User Says Market Cap Definitions &#8216;Should Really Be Readjusted For Inflation&#8217;</a>
<h1 class="wp-block-heading">RBC: Decoupling Is Underway, Neutral For Now</h1>
The continued outperformance of mega-cap growth stocks has been logical but somewhat jarring to RBC, especially as Treasury yields have declined, historically benefiting small caps. However, RBC suggests a decoupling is underway, as <a href="https://in.investing.com/news/stock-market-news/rbc-too-early-to-turn-bullish-on-us-small-caps-4257423">reported</a> by the website Investing.
Factors contributing to the outsized performance of large-cap growth stocks (making it more attractive) include:
<ul>
<li>Slowing GDP forecasts,</li>
<li>More positive recent earnings revisions</li>
<li>Reduced crowding in the large-cap growth sector</li>
</ul>
Despite acknowledging the recent weakness in small caps, RBC remains neutral on the sector relative to large caps. 
The company recognizes the historically favorable positioning of small caps based on investor sentiment and valuation metrics. However, RBC cautions these factors are outweighed by the lack of fundamental tailwinds and negative earnings revision trends for small caps.
RBC suggests a wait-and-see approach, stating, &#8220;We see enough that looks interesting to stay neutral for now and think that when it&#8217;s finally time to put on Fed rate cut trades this space will do well.&#8221;
<h1 class="wp-block-heading">UBS: Strong Potential For Small Caps, Expect Outperformance In Near Term</h1>
On the other hand, UBS analysts are more optimistic about the potential for small-cap stocks in the coming months. They predict strong potential for small caps, citing a historical correlation between small-cap performance and Treasury yields, as <a href="https://in.investing.com/news/stock-market-news/ubs-small-caps-to-outperform-over-the-near-term-432SI-4260840">reported</a> by Investing.
Over the past year, small-cap stocks have outperformed when Treasury yields have declined, notes UBS. Conversely, small caps have underperformed during periods of rising yields. Historically, when this relationship deviates, a correction quickly follows.
UBS points to a significant outperformance of small caps in early February following a disconnect, similar to the current situation where large caps are outperforming despite falling interest rates since May.
&#8220;This represents the potential for mid- to high-single-digit small-cap outperformance over the near term,&#8221; concludes UBS, suggesting a significant upswing for small-cap stocks in the near future.
For investors seeking diversified exposure to small cap equity, the iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>), the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) and the Vanguard Small Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>) are popular ways.
<hr class="wp-block-separator has-alpha-channel-opacity" />
Don't miss the opportunity to dominate in a volatile market at the&nbsp;<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference</a>&nbsp;on Oct. 9-10, 2024, at the Chicago Marriott Downtown Magnificent Mile. 
Get exclusive access to CEO presentations, 1:1 meetings with investors and valuable insights from top financial experts. Whether you're a trader, entrepreneur or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders. Secure your spot and get your tickets today!
Read Next: <a href="https://www.benzinga.com/trading-ideas/small-cap-analysis/24/06/39381483/worried-about-market-volatility-benzingas-smallcap-event-has-answers">Worried About Market Volatility? Benzinga&#8217;s SmallCAP Event Has Answers</a>
Photo: Shutterstock

'Stay On The Sidelines With Small Caps For Now,' Says RBC — But UBS Sees Brighter Days Ahead

The First Trust Small Cap Core AlphaDEX ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fyx#NASDAQ">FYX</a>) was launched on 05/08/2007, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Small Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor &amp; Index
FYX is managed by First Trust Advisors, and this fund has amassed over $836.92 million, which makes it one of the average sized ETFs in the Style Box - Small Cap Blend. This particular fund seeks to match the performance of the Nasdaq AlphaDEX Small Cap Core Index before fees and expenses.
The NASDAQ AlphaDEX Small Cap Core Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 700 Small Cap Index.
Cost &amp; Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF&#39;s expense ratio.
Operating expenses on an annual basis are 0.60% for this ETF, which makes it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.14%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
FYX&#39;s heaviest allocation is in the Financials sector, which is about 22.30% of the portfolio. Its Industrials and Consumer Discretionary round out the top three.
Looking at individual holdings, Oscar Health, Inc. (class A) (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/oscr#NYSE">OSCR</a>) accounts for about 0.49% of total assets, followed by Modine Manufacturing Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mod#NYSE">MOD</a>) and Sphere Entertainment Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sphr#NYSE">SPHR</a>).
The top 10 holdings account for about 4.32% of total assets under management.
Performance and Risk
The ETF has lost about -2.04% so far this year and is up about 10.73% in the last one year (as of 06/18/2024). In the past 52-week period, it has traded between $74.82 and $94.11.
The ETF has a beta of 1.25 and standard deviation of 22.19% for the trailing three-year period, making it a medium risk choice in the space. With about 526 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Small Cap Core AlphaDEX ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 2000 ETF (ARCA:IWM) tracks Russell 2000 Index and the iShares Core S&amp;P Small-Cap ETF (ARCA:IJR) tracks S&amp;P SmallCap 600 Index. IShares Russell 2000 ETF has $59.91 billion in assets, iShares Core S&amp;P Small-Cap ETF has $76.54 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Small Cap Blend.
<a href="https://www.zacks.com/stock/news/2289565/is-first-trust-small-cap-core-alphadex-etf-fyx-a-strong-etf-right-now?cid=CS-BENZ-FT-smart_beta_etf-2289565">To read this article on Zacks.com click here.</a>

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