“Small” Set to Soar? 3 ETFs to Play a Potential Massive Rebound in Small Cap Stocks

From Nasdaq: 2024-04-28 05:15:00

Despite a recent period of large cap outperformance, a popular Wall Street analyst predicts small caps could see a 50% return in 2024 as they catch up to their larger counterparts. Small caps have underperformed due to perceived riskiness, economic sensitivity, and lack of demand from large allocators. Factors such as a healthy economy, lower interest rates, historic valuation gap, and potential for outsized growth could see small caps thrive once again. One way to invest in small caps is through ETFs such as the iShares Russell 2000 ETF (IWM) or the iShares Core S&P Small-Cap ETF (IJR), each with their own advantages and disadvantages.

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