Six of the Best Small-Cap ETFs to Buy Now

Core Insights - Small-cap exchange-traded funds (ETFs) have struggled recently due to market gains being driven primarily by large-cap stocks, which are not included in the Russell 2000 Index [1] - High interest rates have put additional pressure on small-cap companies, which are more reliant on debt and domestic consumer spending [2] - Analysts suggest that small-cap stocks are currently undervalued, and the Federal Reserve's rate cuts may provide a boost [2] - The Russell 2000 Index has seen a nearly 12% increase year-to-date, reaching new record highs [3] Small-Cap ETF Characteristics - Discount valuations on small-cap stocks are considered attractive, with expectations that they will benefit from corporate tax relief and lower interest rates [4] - A methodology for identifying top small-cap ETFs includes criteria such as net assets, expense ratios, and diversification [5] Selection Criteria for Small-Cap ETFs - Net assets of at least $300 million [6] - Expense ratios of 0.60% or less [6] - Inclusion of at least two non-U.S. ETFs, with one from emerging markets [6] - At least two actively managed ETFs [6] - ETFs from six different providers [6]