Prediction: This Small-Cap ETF Will Outperform the S&P 500 Through 2027
After years of disappointing performance, small-caps are roaring back to life.
Overview
For most of the past decade, investing in small-caps to outperform large-caps has been a losing effort. There have been periods, such as 2020, when this group has done well, but those have been the exception instead of the rule.
2026 is starting to look different. Investors are paying attention to valuations again. Small-cap earnings growth is finally accelerating. The iShares Russell 2000 ETF (NYSEMKT: IWM) is beating the Vanguard S&P 500 ETF (NYSEMKT: VOO) by roughly 9% year to date, and it's being driven by improving fundamentals.
Details
That's not where I see the biggest opportunity. The Vanguard Small-Cap Value ETF (NYSEMKT: VBR) looks like it has the most catching up to do. Here's the investment case.
Source
Originally published at www.fool.com.