IJR Vs. SPY: The Small-Large Valuation Gap Has Closed

We see a few factors to diminish iShares Core S&P Small-Cap ETF's (IJR) alpha potential relative to the SPDR S&P 500 ETF Trust (SPY). IJR's valuation gap relative to SPY has largely disappeared in the past few months due to price changes and EPS updates. The updated rate outlook also points to far higher odds of rate hikes in the near future.