The last few months have seen a significant shift back from value to growth. We will often focus on the large cap comparison, but we have seen the value versus growth difference significantly on the small cap side as well.

The last few months have seen a significant shift back from value to growth. We will often focus on the large cap comparison, but we have seen the value versus growth difference significantly on the small cap side as well. The iShares Russell 2000 Value ETF (IWN) crossed below the acceptable 3.0 fund score mark on July 16^th and now has a fund score of 2.75 with a negative score direction of -1.90. In the DALI allocation tool, the small cap value style has fallen from second to sixth since the beginning of July. IWN moved to sell signal on July 8^th and went on to test support at $152 before rebounding to the middle of its trading band. Since the end of the second quarter, IWN has returned -3.43% while RPG, the Invesco S&P 500 Pure Growth ETF, has gained 6.14%. Moving forward it will be important to keep an eye on small cap value areas as we’ve seen higher relative strength out of large caps and growth areas over the past few months.