From Nasdaq: 2024-07-31 06:51:00

The Russell 2000 has surged 10.3% since July 1, outperforming the S&P 500. Investors predict the Fed will cut interest rates, benefiting small companies more than large ones. The Vanguard ETF tracks the Russell 2000, offering a diverse portfolio. Top holdings include Insmed and FTAI Aviation, with solid gains this year. Companies in the Russell 2000 like Tenable and Axcelis Technologies show potential for growth.

Interest rate cuts could boost small caps, as they rely more on borrowing than large companies. The Russell 2000 trades at a discount compared to the S&P 500, which may lead to higher valuations with favorable economic conditions. While the Russell 2000 could see strong returns, historically the S&P 500 has outperformed, cautioning against selling large-cap stocks for small caps. The Motley Fool Stock Advisor team identifies top stocks for potential high returns, so consider their picks before investing in the Vanguard Russell 2000 ETF.



Read more at Nasdaq: A Russell 2000 Bull Market Is Coming: 1 Unstoppable Vanguard ETF to Buy Hand Over Fist