ETF flows are telling a tale the market can’t avoid: investors are going for small caps. The iShares Russell 2000 ETF (NYSE:IWM) has surged more than 10% since the beginning of August, almost twice the SPDR S&P 500 ETF Trust (NYSE:SPY) or Vanguard S&P 500 ETF (NYSE:VOO) over that same stretch. The action is a sign of increasing belief that the widely anticipated Federal Reserve rate cut will reduce the cost of financing and release growth potential in smaller, debt-dependent firms.
- IWM ETF is up more than 5% in the past month. Check it's prices live, here.
