Small caps are getting crushed by interest costs

U.S. small-cap companies are carrying a heavy interest burden.
Interest expense now represents about 31% of EBITDA for Russell 2000 firms, the highest level in at least six years.
That figure has more than doubled since 2020.
Meanwhile, S&P 500 companies are in a much stronger position, with interest expense equal to only about 6.7% of EBITDA.
The reason is structure.
Around 30% of Russell 2000 corporate debt is floating-rate, compared with roughly 7% for the S&P 500.
For $IWM, lower rates are not just helpful.
They may be necessary.