A Small-Cap ETF That May Be Worth A Look (IJR)
Small-caps have had a rough go of things lately, but one ETF that is sporting some decent technicals is the iShares S&P SmallCap 600 Index (NYSE: IJR). Support seems to have emerged at the 50-day moving average and IJR is solidly above its 20-day line as well.
The small-cap arena is always littered with a vexxing blend of profit potential and peril, so ETFs are an excellent avenue for investors to gain exposure to this universe. And to IJR's credit, the ETF doesn't embrace speculative penny stocks.
Top holdings include companies you may have already heard of like Gardnder Denver (NYSE: GDI), Tractor Supply (Nasdaq: TSCO) and Piedmont Natural Gas (NYSE: PNY).
Industrial materials account for 13.4% of IJR's weight, but business services, consumer goods and consumer services also receive double-digit weights and hardware isn't far behind at 9.4%, so IJR is diverse on the sector level.
The ETF made a run at its January peak last week and is consolidating in the high $55 area. If $56 is broken, IJR shouldn't encounter any further resistance until $58.
