Small-Cap Stocks Have Crushed the S&P 500 Recently. Will the Trend Continue?
Small caps are finally starting to turn around. Here's what is driving the move and why it could be just the beginning.
1 Vanguard ETF That Could Soar 41.5% in the Remainder of 2024, According to a Select Wall Street Analyst
Tom Lee of Fundstrat Global Advisors is coming off a string of successful stock market predictions this past year. Lee currently has his eye on small-cap stocks, calling for the Russell 2000 index to soar 50% in 2024.
Is the Vanguard Russell 2000 ETF the Best Undervalued ETF for You?
There was a massive valuation gap between large and small cap stocks at the start of the year, and it has widened even further. The last time small caps traded at such a relative discount was during the dot-com boom.
1 Brilliant Vanguard Index Fund to Buy Before It Soars 49%, According to a Wall Street Analyst
Tom Lee of Fundstrat Global Advisors thinks the small-cap Russell 2000 index could surpass 3,000 this year, which implies 49% upside from its current level of 2,014. Small-cap companies usually benefit from interest rate cuts more than large-cap companies because they carry more floating-rate debt.
VTWO Has Outperformed Its Index, It's A Good Time To Sell
The Russell 2000 Index has been a poor long-term investment due to the method by which it is re-constituted. For the past 25 years, the Russell 2000 Index has exhibited lower returns and higher standard deviations in the months of May–August. Vanguard Russell 2000 Index Fund ETF Shares tracks the Russell 2000, and it has significantly outperformed other similar ETFs Year to Date, and over the past month. Holders should use this as an opportunity to sell.
Should Vanguard Russell 2000 ETF (VTWO) Be on Your Investing Radar?
Looking for broad exposure to the Small Cap Blend segment of the US equity market? You should consider the Vanguard Russell 2000 ETF (VTWO), a passively managed exchange traded fund launched on 09/22/2010.
