Small-Cap Stocks Are Crushing the S&P 500. This ETF Could Be the Smartest Buy of 2026
Small-cap value stocks have been chronic underperformers for years. Thanks to accelerating earnings growth, that value is starting to finally get unlocked.
Overview
The Russell 2000 index is up 19.5% year to date, nearly doubling the S&P 500's 10.5% return. It's one of the small-cap index's best first-half performances over the past two decades and is finally being driven by improved fundamentals and earnings growth.
I've been modestly underweight small-cap stocks for a while, but I'm finding reason to rethink that today. The exchange-traded fund (ETF) I'd be targeting here is the Vanguard Small-Cap Value ETF (NYSEMKT: VBR).
Details
Two things have been driving the 2026 rally.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.