The **Brazilian Small Cap Index (SMLL)** plunged 1.96% today, closing the session with a decisive sell-off that extended the benchmark’s year-to-date (YTD) loss to a significant -6.19%. The drop in the **SMLL** index, which tracks less-liquid and often more domestically focused companies traded on the B3, significantly outpaced the decline in the primary benchmark, the **Ibovespa today**, which fell 1.52% to close at 173,885.34. The disproportionate loss signals a strong rotation by investors away from riskier, lower-liquidity assets, reinforcing a broad **risk-off sentiment** across the local market.