The S&P 500 (^GSPC -0.30%) is on track to finish above 20% for the seventh time in the 21st century. If it gains only a little momentum, it could end the year up over 30% for the first time since 1997.
Large-cap stocks, particularly mega-cap technology companies, have dominated market returns since the Federal Reserve began its aggressive rate-hiking campaign. From March 2022 through Nov. 2024, the S&P 500 delivered a total return of 38.3%, while the Russell 2000 produced a modest 14.9%.
The Vanguard Small-Cap ETF (VB) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market.
These ETFs give you exposure to companies from all size categories and abroad.
For investors seeking momentum, Vanguard Small-Cap ETF VB is probably on the radar. The fund just hit a 52-week high and is up 38.6% from its 52-week low price of $174.84/share.
VB delivered a 28% return last year, offering diversification, though it slightly underperformed the S&P 500. I maintain a "buy" rating for VB, seeing a favorable environment for small US stocks as we move into Q4. I believe small-cap stocks can continue to deliver positive returns because they will benefit from lower interest rates and often perform well post-US presidential elections.
These funds aren't doing well this year, but they could be great buys heading into 2025.
Launched on 01/26/2004, the Vanguard Small-Cap ETF (VB) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Blend segment of the US equity market.
Small-cap stocks could get some major tailwinds in a falling-rate environment. There are several small-cap indexes, and therefore there are several different small-cap index funds.
The Total Stock Market ETF is a great option that should be a part of any portfolio. The Mid-Cap and Small-Cap ETFs are great picks now as the Fed begins to shift policy.
Rate cuts typically benefit small and mid-cap stocks due to their higher financing needs. These Vanguard ETFs offer targeted exposure to potentially outperforming market segments.
A recent M2 money supply rebound could signal a bigger stock market boom. Two Vanguard ETFs are especially well-positioned to profit from such a stock market move.