Prediction: U.S. Small-Cap Stocks Will Beat Large Caps for 10 Years
If you want to lock in future gains from today's small-cap stocks, these two ETFs could be good options.
Overview
The same types of stocks don't always keep winning forever. For most of the past 15 years, U.S. large-cap growth stocks (such as major tech companies) have been some of the best places to invest. But that might not be true in the future.
According to Vanguard's latest market forecast, U.S. small-cap stocks will deliver annualized returns of 5.8% to 7.8% for the next 10 years, outperforming U.S. large-cap stocks (which are expected to return 4.8% to 6.8%). Other recent research from Fidelity shows that small-cap stocks have been demonstrating stronger earnings and cheap valuations. That all could add up to stronger performance in the long run.
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Originally published at www.fool.com.