The small-cap index has been underperforming the S&P 500 for three years, but could make a comeback due to factors like attractive valuations, earnings growth, and lower interest rates. Small caps have been overshadowed by tech stocks, but 2026 could see a resurgence. The Vanguard Russell 2000 ETF offers a cost-effective way to invest in small caps. Small caps are more value-tilted and sensitive to interest rates, with lower rates potentially boosting stock prices. Economic conditions favoring small caps are emerging, but signs of trouble in the labor market hint at a potential economic slowdown.

Read more at Yahoo Finance: Is the Vanguard Russell 2000 ETF a Buy Now?