Prediction: This Underrated ETF Could Be the Most Surprising Outperformer of the Next 10 Years
The biggest opportunities over the next 10 years might come from smaller-company stocks.
Overview
So much day-to-day attention in the stock market is focused on the stocks of big companies. Whether it's the S&P 500 index (SNPINDEX: ^GSPC) or the artificial intelligence (AI) stocks of the tech-heavy Nasdaq-100 index, it might be easy for investors to overlook the investment opportunities of smaller companies.
But small-cap stocks might be having a moment. And that moment could lead to long-lasting momentum. Recent Vanguard research predicts that U.S. small-cap stocks will outperform U.S. large-cap and growth stocks over the next 10 years. Other research from Fidelity says that U.S. small caps are among the cheapest valuations (relative to large caps) since 1990.
Details
There's no guarantee that any stock, sector, or company size will outperform the market. But if you're intrigued by the potential of small-cap stocks, the Vanguard Morningstar Small-Cap ETF (NYSEMKT: VB) can help you buy into this trend. Let's look at this small-cap ETF and see if it's a good choice for your portfolio.
Source
Originally published at www.fool.com.