Hints and tips:
...And yet: The Russell 2000 small-caps index has now lagged behind the S&P 500 large-capitalisation index since its inception at the end of 1978, overturning a century of return data across multiple countries...
...But of those, the top 20 — eg, the Nasdaq, the Russell 2000, the MSCI Emerging Markets or the Bloomberg Aggregate family — account for $7.6tn of benchmarked and $12.2tn of indexed assets....
...small-cap Russell 2000....
...(IWF) and the iShares Russell 1000 Value ETF (IWD)....
...Survey shows far more US voters are more likely to trust Donald Trump to handle the economy than Joe Biden....
...Of this gamma supply, ~70% is on the S&P 500/SPY options,~25% is in Nasdaq/QQQ, and the remainder is a variety of index/ETF exposures (mainly Russell 2000, MSCI EAFE, and MSCI EM) and single names (mainly...
...Stocks that are members of the S&P 500 and of the Russell 2000 index, for instance, are priced at a 30-50 per cent premium relative to similar companies that aren’t. Now, what drove that wedge?...
...Small size and value are regarded by aficionados of “smart beta” as factors that boost returns over the long run. Not everyone is convinced, though....
...The small-cap benchmark, the Russell 2000, has fallen 2 per cent this year....
...2000 small-cap index, those are too broad....
...That sent the S&P 500 down 1 per cent, and the small-cap Russell 2000 down 4 per cent. Futures markets now price in fewer than four 25bp interest rate cuts in 2024, down from five a week ago....
...At least two more of the most popular US ETFs — Invesco’s QQQ which follows the tech-heavy Nasdaq 100, and BlackRock’s iShares Russell 2000 ETF (IWM), which tracks small-cap US equities — have also seen...
...Some of these funds related to the Russell index rather than the Standard & Poor’s index....
...They are usually benchmarked against an index or peer group. So if they stand against a bubble and underperform the index, clients defect and they may be fired....
...It is interesting to see how the Russell 2000 small-caps index has in recent years become a more popular benchmark to showcase private equity returns — which no doubt has nothing to do with its weak performance...
...Managers selecting stocks for their fundamental value are likely to hold few of these tech giants or be underweight them relative to the index....
...One much-discussed data point: Apple is now bigger than the entire small-cap Russell 2000. And indeed, unlike its large-cap cousin, the S&P 600 small-cap index does look cheaper....
...US small caps: The Russell 2000 small-cap index has fallen 11 per cent since its peak in July. The underperformance highlights the acute impact interest rate rises are having on smaller companies....
...The Composite index of OTC stocks has risen 45 per cent since the end of 2018, compared with 51 per cent for the S&P 500 and 49 per cent for the Russell 2000 small-cap index....
...The country is also transitioning from a low-cost manufacturing hub to a higher-value producer as wages rise and assembly factories move to lower-cost countries such as Vietnam and India....
...So the stock index that has risen the most of the major ones is the Russell 2000 stock index, which is where we put our small stocks in America and increasingly, our small, crappy stocks....
...Recent Conservative governments have also questioned the value of the expanded sector, attacking “low value” university courses while seeking to prioritise non-academic skills....
...“The most important rebalances to focus on are large headline indices like the S&P 500 and Russell 1000 and 2000, since sector indices (and therefore sector ETFs) are derived from the parent headline index...
...Analysis from Goldman Sachs last month, looking at more than 500 such funds with a combined $2.6tn in assets, found that the “extreme concentration” in the Russell 1000 growth index was clashing with rules...
...More telling still is the small-cap Russell 2000, which is dead flat despite the fact that its constituents are more likely than their big peers to be hurt by nervous banks pulling back....
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