--- title: "Small-Cap ETFs Hit 52-Week Highs As Russell 2000 Stages Sharp Rebound, Leaving S&P 500 Behind" type: "News" locale: "en" url: "https://longbridge.com/en/news/283546474.md" description: "Small-cap ETFs are experiencing a significant rally, with many reaching 52-week highs as the Russell 2000 outperforms the S&P 500. The iShares Russell 2000 ETF has risen nearly 12% this month, following a correction in March, and has gained over 15% since March 30. This rebound is attributed to falling oil prices and reduced cost pressures. The market is seeing a shift towards cyclical stocks, with expectations of a dovish Fed further benefiting small-cap firms. Various small-cap ETFs are also hitting new highs, indicating strong market breadth." datetime: "2026-04-21T18:30:28.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/283546474.md) - [en](https://longbridge.com/en/news/283546474.md) - [zh-HK](https://longbridge.com/zh-HK/news/283546474.md) --- # Small-Cap ETFs Hit 52-Week Highs As Russell 2000 Stages Sharp Rebound, Leaving S&P 500 Behind Small cap stocks are staging a strong return, and ETFs tracking the space are reflecting this rally. The **iShares Russell 2000 ETF** (NYSE:IWM), for instance, rose almost 12% so far this month, heading for its biggest gain since December 2023. The move comes after a correction in March and has helped take the **Russell 2000 Index** close to record highs. Since reaching their respective year-to-date lowest points on March 30, the Russel 2000 has gained more than 15% till now, outpacing the S&P 500’s 12% gains. _Source: TradingView_ The rebound can be attributed to the significant pullback in oil prices and reducing cost pressures for domestically oriented firms. The recent surge also underscores a broader rotation. Since August 2025, the Russell 2000 has climbed 28%, outpacing the S&P 500, which is up 14% over the same period. This relative outperformance might suggest that investors are moving away from popular mega-cap names into more cyclical and interest-rate sensitive parts of the market, a shift often associated with early-cycle dynamics. ## ETF Breadth Signals Strength Beyond Beta Significantly, the rally is not restricted to just general index exposure. There are various small-cap ETFs that have been hitting their respective 52-week highs on Monday, indicating solid breadth. The list includes, among others, the **Pacer US Small Cap Cash Cows 100 ETF** (BATS:CALF), the **Invesco Dorsey Wright Smallcap Momentum ETF** (NASDAQ:DWAS), and the **Victory US Smallcap High Dividend Volatility Weighted ETF** (NASDAQ:CSB). Core and multi-factor exposures, including the **BNY Mellon US Small Cap Core Equity ETF** (NYSE:BKSE), **FT Active Factor Small Cap ETF** (NYSE:AFSM), and **WisdomTree U.S. SmallCap Fund** (NYSE:EES), have also climbed to fresh 52-week highs. This shows that the move has not been isolated to a few stocks only, which indicates a broader rotation into small caps. ## Small Caps Back In Rate-Sensitive Mode Given that expectations are turning more dovish for the Fed, with 27% of market expecting a rate cut in December according to the **CME FedWatch tool**, investors seem to be betting on better prospects for small-cap ETFs, going forward. 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