This Overlooked Small-Cap ETF Has Crushed the S&P 500 in 2026. Is It Still a Buy Right Now?
It's off to its best start since 2021.
Overview
The S&P 500 (SNPINDEX: ^GSPC) has had a good year, up nearly 13% through Aug. 27. That's above its long-term average, and if it continues through the year, it'll be its fourth consecutive year of double-digit returns.
Although much attention is given to the S&P 500, the iShares Russell 2000 ETF (NYSEMKT: IWM), which mirrors the Russell 2000 index, has slipped under the radar while returning 21.5% this year. It's off to its best start since 2021, but that doesn't mean the momentum is stopping. Investors still have time to add it to their portfolios.
Details
What the S&P 500 is to large-cap stocks, the Russell is to small-cap stocks. IWM holds 1,962 small-cap stocks covering all 11 major U.S. sectors. Here is how the distribution compares to the S&P 500:
Source
Originally published at www.fool.com.