Why Are Small-Cap Stocks Booming? See What the Research Says.
Could small-cap stocks still have big room to grow? Two recent research papers say yes.
Why Are Small-Cap Stocks Booming? See What the Research Says.
Overview
Most discussion of the stock market in the past few years has focused on large-cap companies such as the "Magnificent Seven" and trillion-dollar tech businesses that are leading the artificial intelligence (AI) boom. But what if some of the biggest future opportunities for investors could come from much smaller sources?
So far in 2026, small-cap stocks are outperforming the S&P 500 index. The iShares Russell 2000 ETF (NYSEMKT: IWM), a broad index fund of U.S. small-cap stocks, has risen about 18% year to date, outperforming the S&P 500. In the past year, the iShares Russell 2000 ETF has delivered total returns of 42.46%, outperforming the S&P 500 and the tech-heavy Nasdaq-100 index.
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Source
Originally published at www.fool.com.
