ETF Snapshot: Small caps back in favour

Inflows of €449m

During the week ending 28 July, ETF investors moved back into small-cap stocks following two weeks of outflows, according to data from TrackInsight, while US large-cap ETFs were the only asset class to record outflows.

Small-cap ETFs, which saw total outflows of €1.4bn in the past two weeks, took in €449m during the week, usually a sign of investors backing a pro-cyclical recovery. Pro-cyclical stocks had a strong 2016 and start of 2017 on the back of US President Donald Trump's promises of a fiscal boost and a return to higher oil prices, but investor confidence in his ability to deliver on these promises has waned. US large cap ETFs were the only asset class in the red during the week, recording outflows of €1bn, its first negative flows in three weeks. Meanwhile, European large-cap and global ...