That's where ETFs such as the American Century Small Cap Value Insights ETF (ACSV)come in. ACSV charges a 49 basis point fee to actively invest in small caps meeting quality and value standards. Small Caps Have Outperformed Since Tariffs: This ETF Can Help Frequently underrated but always in the conversation, small caps can sometimes offer big performance. New analysisfrom American Century Investments confirmed this with findings to show outperformance that has continued steady since "Liberation Day†last ye ...

It goes without saying that megacap tech has been the dominant U.S. equity strategy for the past several years. Small caps, often touted as diversifiers and stocks with above-average return potential, have been consistent laggards since 2021. They last peaked relative to the S&P 500 (SNPINDEX: ^GSPC) about a decade ago. The chart demonstrates this, using the iShares Core S&P Small Cap ETF (NYSEMKT: IJR), which tracks the S&P 600, and the iShares Core S&P 500 ETF (NYSEMKT: IVV). Will AI create the world's f ...

Core Viewpoint - The iShares Russell 2000 ETF (IWM) has experienced a decline of nearly 4% over the last 30 days but is maintaining key chart support, indicating resilience compared to other ETFs amid a broader market selloff [1][4]. Performance Summary - IWM is currently trading at $251.88, down 0.6% at the last check, and has lost 3.8% in the past 30 days, remaining close to its year-to-date breakeven level [2]. - In comparison, other sectors such as semiconductors and the Financial Select Sector SPDR Fund (XLF) have performed worse during the same period [2]. Options Market Sentiment - There is significant pessimism surrounding IWM, as indicated by a higher-than-usual buying of puts relative to calls. The 10-day put/call volume ratio stands at 1.72, ranking in the 80th percentile of its annual range [3]. Chart Support Analysis - IWM has chart support at its 126-day moving average, approximately at the $250 level. If this support holds and small caps rebound, there could be an unwinding of bearish bets, potentially pushing IWM back to its all-time high of $271.59 reached on January 22 [4].

Core Insights - Small-cap stocks are experiencing a resurgence, with the iShares Core S&P Small Cap ETF up over 7% year to date as of March 3, 2026, while large caps remain mostly flat [1] - The narrative surrounding artificial intelligence (AI) has shifted market focus towards how industries will be disrupted by AI, leading to a rotation from tech stocks to undervalued sectors, including small caps [2] - Small-cap corporate earnings have begun to rebound, with a 27% increase in earnings in the latter part of 2025, indicating a potential for stock price gains [5][6] Small-Cap Performance - Small caps have lagged behind large caps for years but are now positioned for a potential leadership role in the market [3] - The iShares Core S&P Small Cap ETF has a price-to-earnings (P/E) ratio of 18.5, significantly lower than the 27.7 multiple for the iShares Core S&P 500 ETF, suggesting substantial value remains to be unlocked [8] Economic Factors - The market had previously anticipated multiple Federal Reserve rate cuts, which could benefit small caps, but recent inflation measures have complicated this outlook [9] - Concerns about the health of the U.S. economy and slowing earnings momentum in large caps may lead to a decline in their performance, contrasting with the more stable outlook for small caps [7]

Market Corrections and Recovery Cycles - Investors have not faced many significant market corrections in the past two decades, with notable exceptions being the 2008-2009 financial crisis, the 2018 mini-bear market, and the COVID pandemic [1][2] - The 2022 bear market was the longest drawdown, with the S&P 500 fully recovering only by the end of 2023 [2] - The next market correction may be imminent if economic conditions worsen, as investors have limited experience with prolonged pullbacks [3] Small Caps vs. Large Caps in Recovery - During recovery cycles, small-cap stocks often lead the market rebound rather than large-cap stocks [4] - Historical data shows that small caps fell more than the S&P 500 during the COVID bear market but outperformed in the subsequent recovery [6] - Similarly, during the financial crisis, small caps led the recovery for two years after the market bottomed in early 2009 [7] Investment Strategies - In recovery scenarios, investors tend to buy riskier stocks, which often include small-cap stocks that can recover more quickly than larger companies [8] - A small-cap ETF could be beneficial during recovery cycles, but a total market ETF, such as the Vanguard Total Stock Market ETF, is preferred for its combination of large and small-cap exposure [9][10] - This strategy allows for capturing upside potential while maintaining a more conservative approach to investing in recovery cycles [10]

Core Insights - The article discusses the investment landscape in Brazil and Latin America, highlighting the potential opportunities in undercovered stocks [1] Group 1: Company Insights - The analyst has a beneficial long position in VALE, indicating confidence in the company's future performance [2] - The article emphasizes the importance of conducting thorough due diligence before making investment decisions related to VALE and similar companies [2] Group 2: Industry Insights - The focus is on the broader investment environment in Brazil and Latin America, suggesting that there are significant opportunities in this region that may not be fully recognized by the market [1]

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Group 1: Market Overview - In 2026, small caps have shown their importance in a diversified portfolio, rebounding from a long period of underperformance compared to large caps [1][2] - A market rotation away from technology stocks has led to increased interest in small caps, as investors seek better value and momentum [2] Group 2: iShares Core S&P Small-Cap ETF - The iShares Core S&P Small-Cap ETF tracks the S&P 600 index, which includes a quality screen requiring positive earnings in the most recent quarter and the past four quarters [4][6][9] - The S&P 600 is more tilted towards larger companies compared to the Russell 2000, which captures a broader range of stocks without stringent quality requirements [5][6] Group 3: Sector Composition - The sector composition of the S&P 600 includes financials (18%), industrials (18%), consumer discretionary (14%), technology (13%), and healthcare (11%), making it more cyclically sensitive [11] - This different sector composition allows small caps to behave differently than large caps, providing a good diversification strategy [10][12] Group 4: Investment Strategy - Maintaining exposure to small caps can help balance a portfolio that is heavily weighted in large caps, reducing the need for market timing and improving overall performance [13][14] - The current market environment suggests that small caps may perform better during periods when large-cap tech stocks underperform, highlighting their role in risk management [12][14]

Market Overview - Investors are shifting focus beyond technology for the first time in over three years, with energy and consumer staples emerging as top-performing sectors in 2025 [1] - Value and dividend stocks are experiencing a resurgence, while international equities have shown significant growth since the start of 2025 [1] Small Caps Performance - Small-cap stocks, previously overlooked, are gaining attention due to their limited exposure to technology and appealing valuations [2] - The Russell 2000 index, a benchmark for small caps, is attracting analysts' interest with notable price targets [2] Investment Case for Vanguard Russell 2000 ETF - The Vanguard Russell 2000 ETF (NASDAQ: VTWO) has a projected 25% upside over the next 12 months according to the ETF Action database [3] - The investment case for this fund is being analyzed as it heads into the latter part of 2026 [3] Small Caps vs. Megacaps - Small caps are becoming more attractive as megacaps face concentration risk, with the "Magnificent Seven" stocks declining over 10% from their all-time highs [7] - The current market environment is favoring small caps due to valuation concerns regarding megacaps and potential rate cuts [9] Earnings Growth and Valuation - The Russell 2000 is projected to grow earnings by 19% in 2026, compared to a 13% growth forecast for the S&P 500 [9] - The Vanguard Russell 2000 ETF has a price/earnings (P/E) ratio of 18, significantly lower than the 28 P/E ratio of the Vanguard S&P 500 ETF [9] Interest Rates Impact - Small companies are likely to benefit from lower interest rates, as many carry higher debt loads [8] - While current expectations for rate cuts are modest, any unexpected economic changes could prompt the Federal Reserve to consider more aggressive rate cuts [8]

Market Overview - The equity market has shown resilience despite recent selling pressure, with the S&P 500 near all-time highs and the equal-weighted S&P up 6-8% year-to-date [3][4] - There is a broad bull market, but certain sectors have been heavily impacted, particularly those exposed to AI disruptions [2][3] Sector Performance - Technology stocks are experiencing mixed sentiments, with some positive outlooks for companies like Palantir and Apple, especially with upcoming product launches [4][5] - Sectors such as oil field services, copper mining, and chemicals are performing well, indicating that not all sectors are equally affected by AI advancements [7] International Markets - Japan's market is performing strongly, with significant interest in Japanese equities due to corporate governance reforms and fiscal policies [14][17] - China continues to export disinflation, with expectations of 2-4% deflation in real estate, which may help keep global inflation in check [12] Cryptocurrency and Commodities - Bitcoin ETFs have seen significant outflows of $5.8 billion, while Abu Dhabi has invested $1 billion, indicating a divergence in market sentiment [19][20] - Gold is viewed as a safe haven amid deflationary pressures, with expectations that it may rise above $5,000 again [21][23] Small Cap Stocks - Small cap stocks are performing well, with the Russell 2000 index showing positive trends despite broader market concerns [26][27] - Wisdom Tree emphasizes the importance of small caps in their investment strategy, highlighting their historical performance and growth [25][27]