The Russell 2000 (RTY) tumbled in Q1 2025, with recession-worries cropping up in markets weighing on the gauge of U.S. small-cap stocks. 

The Russell 2000 (RTY) dropped 9.8% in the first three months of the year, traveling in the same southward direction as large-cap stocks. The S&P 500 (SP500)(VOO)(SPY) slumped 4.6% in Q1. 

Small-caps have been battered largely as investors weigh recession risks as the Trump administration launched tariffs on products imported into the U.S., such as steel and aluminum. Goldman Sachs on Sunday raised its recession-risk projection to 35% from 20%. T

The Trump administration on April 2 plans to outline more tariff action against trading partners worldwide.

The iShares Russell 2000 ETF (NYSEARCA:IWM), with +$64B in assets under management, slumped ~9.7% in Q1 2025. Below are how its 10 largest holdings performed, along with Seeking Alpha’s Quant Ratings. SA’s Quant Ratings ratings are given on a scale from one to five, with any rating of 3.5 or above considered a bullish rating.

• Sprouts (NASDAQ:SFM) - YTD move: +20.1%. SA QR: 4.91
• Insmed (NASDAQ:INSM) - YTD move: +10.5%. SA QR: 2.99
• FTAI Aviation (NASDAQ:FTAI) - YTD move: -23.2%. SA QR: 2.76
• SouthState (NYSE:SSB) - YTD move: -6.5%. SA QR: 3.09
• Carpenter Tech (NYSE:CRS) - YTD move: +6.8%. SA QR: 3.40
• Applied Industrial Technologies (NYSE:AIT) - YTD move: -5.9%. SA QR: 3.25
• Vaxcyte (NASDAQ:PCVX) - YTD move: -53.9%. SA QR: 2.84
• Mueller Industries (MLI) - YTD move: -5%. SA QR: 4.68
• Halozyme (NASDAQ:HALO) - YTD move: +32%. SA QR: 3.33
• Beacon Roofing (NASDAQ:BECN) - YTD move: +21.9%. SA QR: 3.18

 

Other small-cap ETFs include: (IJR), (VB), (VBR), (VBK), (SCHA), (SPSM), and (DFAS).