Investors Gain Premium from Timely Shift into Small Business Funds
A shift into small caps in the spring is reaping big summer rewards By Robert Stowe England Investors have been increasing their stakes in small cap equities since mid-May, according to EPFR Global, a Boston-based firm that tracks the performance of $38 trillion in mutual funds and ETFs. During June, net inflows into small cap funds rose to around $10 billion a week and have continued at the pace through mid-August. The move into small caps that began in May has given investors in this sector a significant bonus. "This year small caps as a fund group are the best performing through the first week of August,” beating large cap and mid cap, according to Cameron Brandt, director of research for EPFR Global. The performance premium for small caps began in March and then took off in May and has continued into August. Optimism in the small business sector of the U.S. economy has been rising since late 2016. The Small Business Optimism Index rose to ...