Jefferies analysts have set the S&P 500 (^GSPC 0.38%) with a 2025 target of 6,000. That forecast implies about 1% downside from its current level of 6,050, which ranks among the most bearish outlooks on Wall Street.
The Vanguard Russell 2000 Index Fund ETF tracks small capitalization U.S. stocks primarily in the Industrial, Financial, and Health Care sectors. The ETF offers low expenses and broad diversification, with a limited top-ten components concentration. I estimate VTWO holdings trade at a current earnings yield of about 5.40%.
The Vanguard Russell 2000 ETF (VTWO) was launched on 09/22/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market.
Stocks are capping off a banner year led by AI names like Nvidia and Palantir, but as investors get ready for 2025, the market seems to be shifting.
1 Vanguard Index Fund May Beat the S&P 500 by 100% in the Next Few Years, According to a Wall Street Analyst
This ambitious prediction just received a boost from President-Elect Trump's election win.
Exchange-traded funds are a great way for investors to diversify.
The Federal Reserve is slashing interest rates, which is great news for small-cap stocks.
After its huge rally, the S&P 500 is the most expensive it's been since the pandemic's height. Small-caps are now trading at a discount, but they historically trade at a premium to the S&P 500.
If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the Vanguard Russell 2000 ETF (VTWO), a passively managed exchange traded fund launched on 09/22/2010.
I reiterate a buy rating on VTWO due to its reasonable valuation, strong technicals, and positive long-term trend despite recent market volatility. The Fed's anticipated rate cuts could benefit small-cap stocks like those in the Russell 2000, which are more debt-burdened and sensitive to interest rates. VTWO offers diversification with a slight value tilt and sector spread, making it a strong core position for long-term investors.
Tom Lee of Fundstrat Global Advisors has made a string of accurate market calls over the last couple of years. He still believes in the potential of small cap stocks, predicting a 50% return in the Russell 2000 index this year.