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Will Small-Cap ETFs be Able to Sustain the New-Found Optimism?
ZACKS·2025-09-04 13:01

After a long period of underperformance, small-cap U.S. stocks may be staging a comeback. While it's too early to say for sure whether this is the start of a sustained rally or just an occasional rise, recent data shows encouraging signs for small-cap investors.Small-cap exchange-traded fund iShares Russell 2000 ETF (IWM) has gained 6.3% over the past month (as of Sept. 3, 2025) versus about 2% gains in SPDR S&P 500 ETF Trust (SPY) . However, IWM still lags SPY when the year-to-date performance is considere ...