Concentration risk, geopolitical risk, the return of inflationary pressure amid rising debt — it's been a stressful year for investors already. Indeed, there are more negative stories than positive when it comes to investing.
Small- and midcap ETFs are often touted for their potential, with the former in particular providing a lot of upside. In recent years, the huge AI hyperscalers have produced outsized returns and majorly overshadowed smaller firms in overall stock market performance.
An active small-cap ETF from T. Rowe Price pulled in $30.88 million over the past week, making it the second-largest inflow among the firm's exchange-traded funds, according to ETF Database.
It's early days in 2026, but small-caps have been a winner in recent months. The Russell 2000 Index has returned 10.6% over the last three months according to YCharts.
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.