Small cap stocks have greatly underperformed large cap stocks in 2007. While the S&P 500 is up 4.2% YTD, the Russel 2000 is actually down by 1.8%. In particular, small cap value stocks have been hit hard. The ETF IWN, which aims to invest in small cap value stocks, is down by a whopping 11.1% so far in 2007.
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