“Given that many small-cap portfolio managers don’t like to stray too far from their benchmarks on sector weightings, we see risk they will trim exposure,” Calvasina wrote in a note Thursday.
FTSE Russell’s global stock indexes are used as benchmarks for about $16 trillion in assets, the company said in a statement earlier this month. An estimated $9 trillion in investments track Russell indexes in the U.S., which include the Russell 1000 and Russell 2000.
This article was provided by Bloomberg News.