Funds for these microcaps disappeared on Feb/March RUT correction and never came back. RUT recovered fully but microcaps crashed and stayed down. I am not sure where the money flows were coming from or why they left or if it was all a QE gimmick. It's like liquidity for the microcaps is not there anymore. I read somewhere that the prospects of higher interest rates will negatively impact very small firms.
there was a rotation out of small cap stocks and into more safer stocks like dividend paying stocks and large cap stocks. i thought that was a sign that a stock market correction could be coming as we've been in this current bull market for a couple years now without a 10% correction occurring. However, i think recently, the small caps have bounced back up, which i think is a sign of strength for the stock market. I've been listening to an investment guy on the radio every SAT at noon who has some good analysis on the stock market. The radio show is called empowered investing. You may find it interesting.