- Valuations are high, says David Kostin and team - the Russell 2000's (IWM) P/E ratio is up 25% this year and stands above the 10-year average both in absolute terms and relative to the S&P 500. At the same time, EPS growth is set to slow from 11% this year to 8% in 2014.
- The Russell 2000 has outperformed the S&P 500 by nearly 1000 basis points over the last year.
- Has the catch-up already begun - small caps have lagged the broader market by 250 basis points over the past month.
- Small cap ETFs: IWM, TZA, TNA, UWM, VB, IJR, SLY, RWJ, TWM, URTY, SCHA, RWM, SRTY, SAA, DWAS, VTWO, SBB, RSCO, JKJ, SDD, XSLV, FYX, VIOO, EWRS, TWOK, SMLV, PXSC