ETF Snapshot: Small-cap ETFs the only equity asset class to record outflows

€461m outflows in third week of January

In the week ending 19 January, small caps were the only asset class in the red, according to data from TrackInsight, after the asset class suffered from a period of underperformance compared to larger-cap indices.

Small caps witnessed outflows of €461m versus inflows of €824m the week previous as a weak dollar appeared continued to boost multi-national companies. The dollar has fallen 3.3% in 2018 versus a basket of currencies which means overseas earnings are more valuable when converted back and US exporters are more competitive. The S&P 500 has risen 6.6% to 2,873 points so far this year, while the Russell 2000 index has only climbed 3.7% to 1,608 points during the same period, as at 26 January. Investors continue to remain bullish about US large caps' prospects following US President Don...