Fed officials are hinting at upcoming interest-rate reductions. Small and mid-cap stocks typically outperform in low-rate environments.
Vanguard Large-Cap ETF rose a huge 14% in the first six months of 2024. Vanguard Small-Cap ETF lagged far behind, gaining just 2%.
Small-caps are signaling economic trouble, but also offer outperformance potential. Vanguard Small-Cap Index Fund ETF mirrors CRSP U.S. Small Cap Index with low-cost and high diversification. VB has diverse holdings, with Industrials as the top sector, outperforming IWM and offering high growth potential.
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.
Just 8% of professional money managers have bested the S&P 500 over time. However, a few ETFs do have a track record of beating the broad market.