- "It's hard to find a bargain out there," says Fidelity fund manager John Roth, as - even with two sharp small-cap selloffs this year - the Russell 2000 (IWM) is down only 3.5%, and still trades at a lofty 19.1x earnings. At the start of 2013, the index's P/E was 15.1, and the average since 1994 is 16.9. After trimming positions in Q1, Roth's New Millenium Fund holds just 12% of assets in small caps vs. an average of 19% from 2008-2013.
- Manager of the $240M Wasatch Small Cap Value Fund, Jim Larkings is keeping cash towards the higher end of his typical 2-8% of AUM. He's finding some value in those small caps reeling due to the broader selloff in high-growth tech, but "The real darlings aren't even close to value territory."
- Individual investors, however, continue to be believers, pouring $3.1B into small cap mutual funds to add to $16.4B in inflows last year.
- ETFs: IWM, IJS, TZA, TNA, UWM, VB, IJR, SLY, EES, VBR, RWJ, VBK, URTY, SCHA, TWM, IWO, IWN, IJT, RWM, SRTY, DWAS, SAA, JKL, VTWO, RZV, SLYG, SLYV, VIOO, SDD, RZG, SBB, RSCO, JKJ, UKK, VTWG, FYX, TILT, VIOG, FNDA, XSLV, VIOV, FYT, SKK, JKK, EWRS, TWOK, PXSV, VTWV, UVT, SMLV, SJH, IESM, VLU, PXSC, FYC, PXSG
at Zacks.com (Jan 14, 2015)