Why investors are betting on actively-managed small-cap ETFs

According to Strategas, only about 7% of small-cap ETF assets are held in actively-managed funds, yet those funds account for more than 40% of this year's fund flows into the small-cap ETF space. Why? As Strategas Securities ETF and Technical Strategist Todd Sohn explains in the video above, it likely has to do with what small-cap ETFs are investing in. Given higher interest rates, Sohn says, "the flaws have been exposed," pointing out that a lot of small-cap ETFs have high exposure to interest-rate sensitive sectors such as regional banks. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.