SPDR Portfolio S&P 600 Small Cap ETF Price & Performance (SPSM)

The SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) attracted $1.1 billion in inflows, pushing its assets to $40.5 billion. This surge followed a softer-than-expected inflation report, with CPI at 2.8%. Meanwhile, U.S. equity ETFs led inflows, with the SPY ETF gaining $8.94 billion as the S&P 500 rose 0.5%.12

State Street Global Advisors predicts U.S. small-cap stocks may benefit from GDP growth and inflation above average. Citing cyclical exposures, the firm expects domestically focused companies to outperform, especially in sectors like regional banking and technology. A diversified portfolio including small-cap ETFs and gold is recommended for managing volatility.3

Investors are turning to small-cap ETFs, like the SPDR SSGA US Small Cap Low Volatility Index ETF, which gained over 21% this year. Small-cap stocks, often reliant on borrowed capital, are seen as potentially outperforming amid anticipated Federal Reserve rate cuts, offering diversification beyond large-cap-heavy portfolios.4