Mid-Cap Growth Picking Up

In the five days ending last Friday, by far the best performing major US index ETF in our Trend Analyzer was the Micro-Cap ETF (IWC) with a 1.65% gain. That also places it in the top spot in terms of YTD performance. In spite of that outperformance, it finished last week as one of just three ETFs in the group that is below its 50-DMA.

Up another 0.59% so far today, IWC is continuing to close in on getting back above its 50-DMA. While micro-caps have done well, other small-cap indices like the Russell 2000 ETF (IWM) and the Core S&P Small-Cap ETF (IJR) have done far worse. Yet even worse still were S&P 500 Mid-Cap ETFs (IJH and MDY), which found themselves at the bottom of the list in terms of five-day performance.

But not all mid-cap indices were the biggest losers last week. The broader measure of the mid-cap space, the Russell Mid-Cap ETF (IWR)—which tracks the 800 smallest stocks in the Russell 1000 whereas the S&P mid-cap ETFs track the S&P 400—was likewise lower over the five days ending last Friday, but its loss was much smaller at 18 bps versus the over 1% decline for IJH and MDY.

Breaking that down further, growth was the key to this stronger performance for the Russell mid-caps. The Russell Mid-Cap Growth ETF (IWP) saw a standout performance with a 1.28% gain last week compared to a 0.83% decline in the value counterpart, the Russell Mid-Cap Value ETF (IWS).

Other growth ETFs like the Russell 2000 Growth ETF (IWO), Russell 1000 Growth ETF (IWF), and the broader Growth ETF (VUG) were the only other tickers in the US Styles grouping of our Trend Analyzer that were in the green last week, though, they all were up by a full percentage point.

Again, in spite of also tracking mid-caps, the S&P’s ETF also underperformed, with the S&P Mid-Cap Growth ETF (IJK) falling 0.69%. One possible reason for the outperformance of the Russell Mid-Cap Growth ETF could be a rotation into what has been this year’s losers. Although it outperformed in the past week, IWP is still the worst performer on the year with other growth ETFs not far behind.

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