Microcap ETFs Shunned as Reddit, Robinhood Feed Retail Addiction
- Money has been flowing out as some individual stocks surge
- ETF investors gravitate toward sector themes like clean energy
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With penny stocks all the rage in Reddit forums and across the Robinhood trading platform, U.S. retail investors are pulling money from microcap funds just to support the habit.
Managed by BlackRock Inc., the $1 billion IShares Micro-Cap ETF, known by its ticker symbol IWC, has seen nearly $26 million of net outflows over the past 12 months. The $129 million First Trust Dow Jones Select MicroCap Index Fund, or FDM, has seen withdrawals of $19 million.