ETF Targets and Eliminates Underperforming Small-Cap Stocks

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Between April 3 and April 9, 2023, U.S. small-cap stocks, as measured by the Russell 2000 index, experienced sizeable inflows ranging from 7.2 million to 9.5 million shares daily, despite market volatility from President Trump’s tariffs. Following a year-to-date low on April 8, the Russell 2000 has increased over 38%, surpassing the S&P 500’s recovery during the same timeframe.

The iShares Core S&P Small-Cap ETF (NYSEARCA: IJR), launched on June 2, 2000, has 637 holdings focusing on financially sound U.S. companies meeting strict criteria. It has recorded a nearly 579% gain since inception, with a current yield of 1.93% and an expense ratio of 0.06%. Institutional ownership stands at nearly 67%, with significant inflows of $15.23 billion against outflows of $4.73 billion in the past year.

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