Russell rotation: YTD market capitalizations swelling for small-caps

Small-cap stocks such as Abercrombie & Fitch (ANF) are seeing billions of dollars added to their year-to-date market capitalizations, aided by the recent rotation into that portion of the U.S. equity market from large-caps (SP500)(SPY)(COMP:IND). 

The Russell 2000 (RTY) rose for a second straight week, picking up 1.5%, although the advance was limited by stalling in its recent rally. Small-caps funds drew in $9.9B over the past week, the second-largest weekly inflow on record, Bank of America said Friday, citing EPFR data.

Insmed (INSM) is among the Russell 2000 (RTY) constituents posting big jumps in stock-price performances alongside swelling market caps. Insmed’s (INSM) valuation has climbed to $11.3B so far this year, from $4.3B in 2023. Shares of the biotech company focused on rare pulmonary diseases were up 145% YTD, swinging from a ~29% loss in late May.  

Here’s how the market caps of the 10 most valuable stocks in the iShares Russell 2000 ETF (IWM) have increased so far this year: 

• Insmed  (INSM) – Market cap: $11.3B - Market cap in 2023: $4.3B
• FTAI Aviation (FTAI) – Market cap: $10.3B - Market cap in 2023: $4.65B
• Vaxcyte (PCVX) - Market cap: $8.66B - Market cap in 2023: $5.98B
• Fabrinet (FN) - Market cap: $8.58B - Market cap in 2023: $6.91B
• Sprouts (SFM) - Market cap: $8.31B - Market cap in 2023: $4.89B
• Fluor (FLR) -  Market cap: $8.2B - Market cap in 2023: $4.89B
• Abercrombie & Fitch (ANF) - Market cap: $8.02B - Market cap in 2023: $4.45B
• Lantheus (LNTH) - Market cap: $8.02B - Market cap in 2023: $4.25B
• Applied Industrial Technologies (AIT) - Market cap: $8.01B - Market cap in 2023: $4.25B
• Ensign Group (ENSG) - Market cap: $7.7B - Market cap in 2023: $6.28B

Other small-cap ETFs include (IJR), (VB), (VBR), (SPSM), and (DFAS).