After three years of outstanding gains, the S&P 500 started off strong in 2026 as well. The index climbed another 1.4% in January, despite experiencing a bit of volatility related to President Donald Trump's potential trade policies. But a pair of exchange-traded funds (ETFs) handily outperformed that result in January, and that trend could continue throughout 2026 and beyond. Several catalysts could support the growth of smaller companies with less weight (or no presence at all) in the S&P 500 index, and ...

Core Insights - The iShares Russell 2000 Value ETF (IWN) and iShares SP Mid-Cap 400 Value ETF (IJJ) were both launched 20 years ago but have diverged in performance and characteristics [1][2]. Cost & Size Comparison - IWN has an expense ratio of 0.24% and an AUM of $12.59 billion, while IJJ has a lower expense ratio of 0.18% and an AUM of $8.47 billion [3][4]. - The 1-year return for IWN is 18.44%, compared to IJJ's 10.84%, and IWN has a dividend yield of 1.53% versus IJJ's 1.7% [3]. Performance & Risk Comparison - Over the past five years, IWN experienced a maximum drawdown of 26.71%, while IJJ had a lower drawdown of 22.68% [5]. - A $1,000 investment in IWN would have grown to $1,338, whereas the same investment in IJJ would have grown to $1,528 [5]. Portfolio Composition - IJJ focuses on mid-cap value stocks, with significant holdings in financial services, industrials, and consumer cyclical sectors, totaling 311 holdings [6]. - IWN, in contrast, holds a broader array of 1,413 small-cap stocks, with top holdings including EchoStar Corp., Hecla Mining Company, and TTM Technologies, reflecting a wide diversification [7]. Investment Implications - Investors' choice between IWN and IJJ may hinge on their risk tolerance, as small-cap stocks (IWN) are generally more volatile than mid-cap stocks (IJJ) [8][10]. - IJJ has outperformed IWN by over 20% in both the last five years and since inception, making it a more stable option with potential for price gains [10].

Group 1 - 2026 is expected to be a favorable year for small-cap stocks as the AI rally matures according to market analysts [1] - The article highlights the importance of interest rates in shaping market conditions for small-cap stocks [1] Group 2 - The author emphasizes the significance of dividend-paying income stocks and funds for retirement income [1] - There is a focus on the psychological aspects of market behavior alongside financial trends [1]

Core Insights - The iShares MSCI Small-Cap ETF (SMIN) focuses on approximately 500 small-cap stocks from India, which is recognized as the fastest-growing G20 economy [1] - SMIN has a total size of $700 million and has been in existence for 14 years [1] Company and Industry Summary - SMIN targets small-cap stocks, indicating a focus on companies that may have higher growth potential compared to larger firms [1] - The ETF's emphasis on the Indian market highlights the investment opportunities within emerging economies, particularly in sectors that are expected to grow rapidly [1]

Market Analysis by covering: US Small Cap 2000, Green Plains Renewable Energy Inc, HCI Group Inc, Willdan Group Inc. Read 's Market Analysis on Investing.com ...

Core Viewpoint - The Russell 2000 index is experiencing a breakout, indicating a bullish trend for small-cap stocks, with potential gains of up to 45% from the breakout point, driven by economic strength and improving profitability [2][3][5]. Group 1: Market Performance - The Russell 2000 index has set a new high and continued to gain, contrasting with mixed performances from the S&P 500, Dow, and Nasdaq [2]. - A bullish technical signal has emerged from the Russell 2000 breakout, with a potential advance of 750 points as a low-end target, bringing the index near 3,250, and a stronger scenario could see it rise to 3,650 [3]. Group 2: Economic Indicators - Economic conditions are favorable, with the Atlanta Fed's GDPNow tool forecasting Q4 GDP growth at 5.3%, indicating accelerated economic momentum [6]. - Labor markets remain healthy, with employment levels, wages, jobless claims, and job creation trending at historically strong levels, which supports the outlook for the Russell 2000 [6]. Group 3: Investment Opportunities - Small-cap stocks are positioned for gains in 2026, with stock selection being critical as many may face competition challenges [4]. - Non-tech firms, having traded at lower valuation ranges due to underperformance in 2025, present attractive investment opportunities as earnings growth improves and market revaluation occurs [7].

Group 1 - The Dow Jones Industrial Average and the S&P 500 reached new record highs, with the Dow increasing by 238 points, or 0.5%, and the S&P rising by 0.7% [1] - The Nasdaq Composite also gained 0.8%, although it remains significantly below its all-time high levels [1] Group 2 - The Russell 2000 index, which tracks smaller market capitalization stocks, rose by 0.8% on Friday, indicating a shift in investor focus away from popular tech stocks [2] - This performance suggests that investors are diversifying their investments beyond the major tech stocks [2]

Core Insights - The iShares SP Mid-Cap 400 Value ETF (IJJ) and Vanguard Small-Cap Value ETF (VBR) are both value-oriented ETFs targeting U.S. stocks trading below their estimated worth, but they differ in their focus on mid-cap versus small-cap companies [2][8] Cost and Size Comparison - IJJ has an expense ratio of 0.18% and assets under management (AUM) of $8.0 billion, while VBR has a lower expense ratio of 0.07% and significantly larger AUM of $59.6 billion [3][4][9] - VBR offers nearly triple the number of holdings compared to IJJ, with 840 stocks versus IJJ's 309 [3][6] Performance and Risk Metrics - Over the past year, IJJ returned 7.6% while VBR returned 8.06% [3] - The maximum drawdown over five years for IJJ is -22.68%, compared to VBR's -24.19% [5] Portfolio Composition - VBR's largest sector exposures are in industrials (19%), financial services (18%), and consumer cyclicals (13%), indicating broad diversification [6] - IJJ focuses more on mid-cap value stocks, with significant weights in financial services (19%), industrials (15%), and consumer cyclicals (12%) [7] Investment Implications - Cost-conscious value investors may prefer VBR due to its lower fees and broader small-cap exposure, while those seeking a smoother investment experience might opt for IJJ's mid-cap focus, accepting higher costs for potentially reduced volatility [10][11]

Group 1: Small Cap Stocks Overview - Dynavax Technologies, Spring Valley Acquisition, Omeros, SOBR Safe, and AlphaVest Acquisition are highlighted as five Small Cap stocks to watch today [2] - Small-cap stocks are defined as publicly traded companies with market capitalizations roughly between $300 million and $2 billion, viewed as higher-growth opportunities but with greater volatility and lower liquidity compared to mid- and large-cap stocks [2] Group 2: Dynavax Technologies - Dynavax Technologies Corporation is a commercial stage biopharmaceutical company focused on developing and commercializing vaccines in the United States [3] - The company markets HEPLISAV-B, a hepatitis B vaccine for individuals aged 18 years and older in the United States and Europe [3] Group 3: Omeros Corporation - Omeros Corporation is a clinical-stage biopharmaceutical company that develops small-molecule and protein therapeutics targeting immunologic diseases, cancers, and addictive disorders [4] - The company is developing Narsoplimab (OMS721/MASP-2), which has completed pivotal trials for hematopoietic stem-cell transplant-associated thrombotic microangiopathy and is in Phase III trials for immunoglobulin A nephropathy [4] Group 4: SOBR Safe - SOBR Safe, Inc. is a hardware and software company that develops non-invasive alcohol detection and biometric identity verification systems [5] - The company offers products such as SOBRcheck, a stationary identification and alcohol monitoring product, and SOBRsure, a transdermal alcohol-detecting wearable band [5]

Seedlings labeled GRC, UCTT, WTTR, EVLV and WWW sit beside a 2026 calendar and growth chart, symbolizing small-cap upside. Key Points Small-cap stocks may outperform in 2026 as investors rotate away from mega-cap tech and seek undervalued growth opportunities. These five small-cap stocks offer exposure to industrials, semiconductors, energy infrastructure, AI security, and consumer brands. Analysts see double-digit upside and strong earnings growth potential across all five names. Interested in Wolver ...