From CNBC: 2024-11-30 11:00:01

Small caps hit historic highs, with the Russell 2000 index reaching a record high. VettaFi’s Todd Rosenbluth predicts small caps will be favored in 2025, benefiting ETF funds specializing in the group. He suggests profit-taking in top stocks like Apple and Microsoft, as investors rotate out of money market accounts.

Rosenbluth expects investors to shift towards small caps as the Federal Reserve eases interest rates. He sees potential in ETFs like the iShares Core S&P Small-Cap ETF and VictoryShares Small Cap Free Cash Flow ETF. The Core S&P ETF is up 11% in November, while VictoryShares’ fund has gained almost 8%.

Read more: Rally in small caps just starting: VettaFi’s Rosenbluth suggests