Small-Cap ETFs Enjoy Record Inflows Due To Optimistic Retail Investors: Is This The Decade Of 10% Annual Returns?
Portfolio Pulse from Piero Cingari
Small-cap ETFs have seen record inflows, with over $3.5 billion in a week, led by retail investors. Pacer US Small Cap Cash Cows ETF and Vanguard Small-Cap ETF are top performers. Despite the influx, small caps are still undervalued. Bank of America predicts a bullish outlook for small caps, potentially outperforming large caps in 2024 with an expected 10% annual return.

February 21, 2024 | 5:28 pm
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POSITIVE IMPACT
Avantis U.S. Small Cap Value ETF has seen impressive inflows, positioning it well in the current market trend.
The significant inflows into AVUV suggest a bullish sentiment among investors, likely benefiting its short-term price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Pacer US Small Cap Cash Cows ETF has attracted over $3 billion in the last three months, leading the small-cap ETFs in inflows.
The significant inflow into CALF highlights strong investor interest, likely driving up its price in the short term due to increased demand.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Dimensional U.S. Small Cap ETF's inflows indicate a positive investor sentiment towards small-cap investments.
DFAS's inflows reflect a positive investor sentiment towards small-cap investments, likely to boost its short-term price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
iShares Core S&P Small-Cap ETF also sees significant inflows, indicating a positive outlook among investors.
IJR's notable inflows reflect growing investor confidence, likely to positively impact its short-term price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Schwab U.S. Small-Cap ETF's inflows demonstrate strong investor confidence in the small-cap market.
SCHA's significant inflows suggest a bullish sentiment, likely leading to a positive price movement.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
SPDR Portfolio S&P 600 Small Cap ETF's inflows suggest growing investor interest in the small-cap sector.
The inflows into SPSM are indicative of a bullish outlook among investors, potentially leading to a price increase.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
SSGA SPDR ETFS EUROPE II PLC's inflows show growing interest in small-cap ETFs among investors.
SSEUF's inflows indicate a growing interest in small-cap ETFs, potentially leading to a positive impact on its price.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Vanguard Small-Cap ETF follows closely with $2.6 billion of inflows, $1.615 billion of which was in the last month, indicating strong investor confidence.
VB's substantial inflows, especially in the recent month, suggest a positive short-term price movement due to heightened investor interest.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Vanguard Small-Cap Growth ETF's recent inflows highlight investor optimism in the growth potential of small caps.
VBK's inflows reflect an optimistic view on the growth potential of small caps, likely to positively affect its price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Vanguard Russell 2000 ETF's substantial inflows reflect a strong investor interest in small-cap stocks.
VTWO's inflows indicate a positive market sentiment towards small-cap stocks, likely to push its price up in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80