This ETF Has More Than Doubled the S&P 500's Returns This Year, but Be Aware of This One Issue It Could Face in the Second Half of the Year.
The coast seemed clear, but now there's more uncertainty to deal with.
Overview
Historically, the S&P 500 index has outperformed the Russell 2000. But through market close on July 22, the Vanguard Russell 2000 ETF (NASDAQ: VTWO), which mirrors the latter index, has more than doubled the former's returns this year -- up 19.3% to the S&P 500's 8%.
Investors have slowed their buying of megacap tech stocks because those stocks have become so expensive. Instead, they are venturing into small-cap stocks, where there has been more value to be found lately.
Details
Broadly speaking, recent macroeconomic changes may alter this trajectory over the remainder of the year. More specifically, despite VTWO's impressive performance so far, it's worth keeping an eye on interest rates, given how they tend to affect smaller companies.
Source
Originally published at www.fool.com.