The ETF ecosystem is growing all the time, and sometimes even more quickly than most investors can appreciate. It can be easy, then, for investors to overlook ETFs that are spiking across various metrics.
As investors consider ways to refresh portfolios in market uncertainty, one segment that may be receiving some new interest is small-caps. Small-cap investing can provide exposure to undervalued names and offset lingering concentration risk.
In the ever-changing equities market landscape, investors have heard a few key themes for years. Small-caps' potential for upside has been a consistent one, and now could be their time to shine.
This year's turbulent market environment underscores the value proposition of actively managed strategies. Active ETFs may offer diversification benefits, a responsiveness to changing market environments, and a depth of fundamental research above and beyond that of their passive peers.
Ongoing market volatility, evolving U.S. economic and trade policy, and global risks cloud outlooks for 2025. Josh Nelson, head of global equity, T.
Active investing has come on in leaps and bounds in recent years. Since the arrival of the ETF rule in 2019, which made creating ETFs easier, active ETFs have blossomed.
Active ETFs have become much more popular in recent years, adding significant AUM amid numerous new launches.
SMIDcap stocks may hold particular appeal for investors this year, given large- and megacap concentrations in major indexes. The T. Rowe Price Small-Mid Cap ETF (TMSL) is worth consideration, given its outperformance within the category.
Eyeing a move into SMIDcaps this year? With many investors already holding significant large-cap allocations in their portfolios, SMIDcap firms could offer diversification as well as upside.
Large-caps have played a key role in the S&P 500 and investors' portfolios this year, perhaps even more so than in most years. However, with large-cap tech, especially driving performance, concentration risk lingers.
T. Rowe Price Small-Mid Cap ETF is an actively managed, multifactor ETF focused on long-term capital growth, launched in June 2023. The TMSL ETF is well-diversified, primarily invested in U.S. companies, with a focus on industrials and financials. TMSL has outperformed a mid-cap benchmark and several mid-cap factor ETFs since inception.
Small and mid-cap firms have gathered significant interest amid the Fed's rate cut cycle. With multiple cuts already in the books, those firms have responded.