Wednesday, December 10, 2008

IWM:XLG Ratio

IWM is the ETF that tracks the Russell 2000 small cap index. XLG is an ETF that invests in the 50 largest US listed companies. here's a chart of the ratio of the two funds:



nothing to get excited about yet, but it looks like the market might start to favor smaller companies again for a little while.

oh and here is a useless prediction: that XLG will become a very popular ETF over the next year. volume has been growing the last few weeks. about 1 million shares were traded today. before too long it will start trading in the 10s of millions.