SPY Vs. IJR: This Chart Shows It's Time To Buy Small Caps

  • Driven by high valuations and rising treasury rates after the U.S. credit downgrade, SPDR\u00ae S&P 500 ETF Trust's valuation risk is among the highest level since the dot-com bubble. Small-cap ETF such iShares Core S&P Small-Cap ETF offers a more attractive risk/return profile. IJR's current yield spread over SPY is at a multi-decade high, and its valuation discount is compelling relative to its own historical level too.