After starting at extreme overbought territory yesterday, the Dow (DIA) has come back a little bit within its trading range despite closing slightly higher in yesterday’s session. That brings the sum of overbought major index ETFs to eleven while the three small caps remain neutral.  The Micro-Cap (IWC) and Core S&P Small-Cap (IJR) both have fallen in the past five days—the only major index ETFs to have done so—while the Russell 2000 (IWM) has moved only 6 bps higher.  Even with the large-cap indices like the S&P 500 (SPY) reaching new all-time highs, the small-caps are sitting in sideways trends over the past six months. Given this, they also have risen the least year-to-date.  Conversely, the Nasdaq (QQQ) has risen over 26% in 2019, the best of these ETFs by a solid margin.

Even with the various style ETFs, small-cap underperformance is evident as the four worst performing ETFs of the group are all small-cap focused. In addition to the underperformance of small-caps, value has also been underperforming growth recently.  Across the ETFs in the US Styles screen of our Trend Analyzer, not a single value ETF is doing better than its growth counterpart for the major indices. The Growth ETF (VUG), Russell 1000 Growth (IWF), and Russell Mid-Cap Growth (IWP) have been the top performers of these.  Additionally, the S&P Mid-Cap 400 Value (IJJ), S&P Small-Cap 600 (IJS), and Russell 2000 Value (IWN) have all declined in the past week. Start a two-week free trial to Bespoke Institutional to access our interactive Trend Analyzer and much more.

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