Traders are diversifying their strategies with small caps and defensive sectors having their moment, Dan Draper, chief executive officer at S&P Dow Jones Indices, told CNBC's "Squawk Box Europe" on Wednesday.
" gives you a tilt toward smaller companies as well as value and more defensive, and building through that. We've also seen not only in the cash equity market, but derivatives — there's now a futures contract as well, E-Mini futures contract on the equal weight," Draper said. Numerous market participants have flagged the potential opportunity in small- to mid-cap stocks as wider market forces shift.
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