Overpriced Small-Cap ETFs May Give Way To Fairly Priced Large Cap ETFs
There’s one issue that has been bothering me for quite some time. Why would investors eagerly pay 21x forward earnings estimates for the iShares Russell 2000 (IWM), when they can pay roughly 14x forward earnings estimates for the S&P 500 SPDR Trust (SPY)? Six months earlier, the forward P/E ratios had demonstrated a similar discrepancy. Yet the markets rewarded [...] [...more]
