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Here's Why Small Cap Growth ETF are Soaring

Neena Mishra
NantHealth, Inc. (NH) delivered earnings and revenue surprises of 23.08% and -10.83%, respectively, for the quarter ended September 2018. Do the numbers hold clues to what lies ahead for the stock?

 

Small-cap companies in the US have been outperforming their larger counterparts since March. There are many reasons behind this outperformance.

Smaller companies are poised to benefit more from tax cuts and deregulation. They are domestically focused and so relatively less exposed to trade and tariff concerns, and geopolitical tensions.

Further, it appears that synchronized global economic growth is losing momentum. As such the outlook for US companies, particularly domestically focused, looks much better.

The US dollar has been rising this year after many months of underperformance. The political crisis in Italy could further boost the dollar against the euro. A strong US dollar hurts large companies that have significant foreign revenue exposure. That’s another reason why investors have been favoring small-cap stocks and ETFs of late.

Small-cap growth stocks have been performing much better than the broader group due to their focus on the technology sector, which continues to be the best performing sector this year.

To learn more about the three top performing Small Cap Growth ETFs--the PowerShares Russell 2000 Pure Growth Portfolio (PXSG), the First Trust Small Cap Growth AlphaDEX Fund (FYC) and the SPDR S&P 600 Small Cap Growth ETF (SLYG), please watch the short video above.

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SPDR-SP6 SC GR (SLYG): ETF Research Reports
 
PWRSH-F P SM GR (PXSG): ETF Research Reports
 
FT-SC GROWTH AD (FYC): ETF Research Reports
 
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