Small-cap companies are beginning to attract increasing attention in 2026 because investors are looking for new assets that can provide alpha. These include the new NEOS Russell 2000 High Income ETF (My professional journey in the investment field began in 2011. Today, I combine the roles of an Investment Consultant and an Active Intraday Trader. This synergistic approach allows me to maximize returns by leveraging deep knowledge in economics, fundamental investment analysis, and technical trading. What You ...

Core Viewpoint - Pagaya Technologies Ltd. (PGY) is identified as a top small-cap investment opportunity for 2026, despite its stock being down 63% from its 52-week high [1] Company Summary - Pagaya Technologies is set to report its Q4 earnings next week, indicating an upcoming event that may impact its stock performance [1] - The company is currently experiencing significant stock price depreciation, which may present a buying opportunity for investors [1] Analyst Background - The analysis is backed by a former managing editor with experience in financial media focused on mid and small-cap companies, providing credibility to the investment insights [1] - The analyst's academic background in financial markets and institutions enhances the depth of research and analysis presented [1]

Core Viewpoint - The Fidelity Enhanced Small Cap ETF (FESM) is highlighted as a strong investment option for small-cap exposure, particularly as investor sentiment shifts positively towards small-cap stocks in 2025 [1][2]. Fund Performance - FESM experienced significant inflows of $2 billion in 2025, contrasting with outflows from other small-cap ETFs like the Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap 600 ETF (IJR) [1]. - The fund has a history of outperforming its peers and benchmark, beating its benchmark by approximately 500 basis points in 2025 and outperforming the Morningstar category by nearly 1,000 basis points [2]. Management Style - FESM employs a "strategic active" management approach, utilizing computer-generated analysis for stock selection based on historical valuation, growth, and profitability, rather than traditional stock-picking methods [1]. - The fund maintains a diversified portfolio of around 600 stocks, with sector exposure aligned with its benchmark, focusing on profitable small-cap companies [1]. Cost Efficiency - The expense ratio for FESM is 28 basis points, which is competitive for an actively managed fund, making it an attractive option for investors seeking low-cost active management [2]. - The fund's performance justifies its fees, as investors have been rewarded for the active management style despite the low cost [2]. Portfolio Role - FESM is suggested as a core holding for investors looking to enhance their small-cap exposure, especially for those currently invested in index funds or higher-cost active funds [2]. - The fund is positioned as a strategic addition for investors who may want to increase their allocation to small-caps without incurring significant tax liabilities from selling existing holdings [2].

iShares MSCI India Small Cap ETF (SMIN US) – Investment PropositioniShares MSCI India Small Cap ETF (SMIN) targets diversified exposure to India’s smaller-capitalization companies, offering access to earlier-stage growth, domestic demand niches, capital-goods suppliers, and regional champions that can be underrepresented in broad benchmarks. The strategy captures the size premium and entrepreneurial depth of the market while accepting greater idiosyncratic, governance, and liquidity risks typical of small c ...

Core Insights - Syntax Stratified SmallCap ETF (SSLY) provides small-cap U.S. equity exposure through a stratified-weight process that mitigates concentration risks in specific names or industries [1] - The methodology aims to capture small-cap opportunities by emphasizing breadth across economic segments, focusing on innovation, domestic sensitivity, and acquisition optionality [1] - SSLY is designed to maintain diversified representation through periodic rebalancing, which can lead to shifts in value, quality, and growth attributes as market leadership evolves [1] Investment Characteristics - The small-cap sleeve typically exhibits higher volatility and increased sensitivity to credit conditions, labor costs, and the domestic economic cycle [1] - SSLY is expected to perform well during early-to-mid economic expansions when earnings breadth improves, but may underperform during risk-off phases or periods of liquidity tightening [1] - The ETF can serve multiple roles in portfolios, including as a small-cap completion sleeve alongside large-/mid-cap cores, a tactical satellite for domestic cyclicality, or a diversification tool to enhance factor exposures [1] Target Users - Likely users of SSLY include multi-asset allocators aiming for a balanced small-cap exposure and equity managers seeking size premia within defined risk budgets [1] - The ETF's structure is particularly appealing for those looking to achieve deliberate small-cap balance in their investment strategies [1] Risks - Key risks associated with SSLY include small-cap liquidity and reconstitution-related turnover, which can increase trading costs and amplify short-term tracking variability [1]

Core Insights - Armanino Foods of Distinction, Inc. (AMNF) is a leading foodservice pesto producer in the US, demonstrating strong upward momentum with a 57.75% return for investors over the last 12 months [1] Company Overview - AMNF is categorized as a small-cap stock, indicating its market capitalization is relatively low compared to larger companies [1] Performance Metrics - The company has rewarded investors significantly, achieving a return of 57.75% in the past year, showcasing its strong performance in the foodservice sector [1] Industry Context - The foodservice industry, particularly in the pesto segment, is experiencing growth, with AMNF positioned as a key player [1]

Group 1 - Armanino Foods of Distinction, Inc. (AMNF) is a leading foodservice pesto producer in the US [1] - The company has shown strong upward momentum over the last 12 months, rewarding investors with returns of 57.75% [1]

Core Insights - The article highlights a widening gap between momentum and quality in the small-cap ETF landscape, particularly focusing on the iShares Russell 2000 ETF (IWM) as an outperformer [1] Group 1: ETF Performance - The iShares Russell 2000 ETF (IWM) has shown strong performance compared to its peers, indicating a trend favoring momentum over quality in small-cap investments [1] Group 2: Market Dynamics - The analysis suggests that investors may need to reassess their strategies in light of the diverging performance metrics between momentum and quality-focused ETFs [1]

Core Insights - The article discusses the performance comparison between two BlackRock ETFs in the small-cap sector, highlighting a growing disparity between momentum and quality strategies in investment [1]. Group 1: ETF Performance - The iShares Russell 2000 ETF (IWM) has recently outperformed its peers, indicating a strong momentum in the small-cap market [1].

Core Viewpoint - Remitly Global is positioned as a potential high-growth stock, with the potential to become a "10-bagger" due to its small-cap status and market share growth opportunities [1]. Group 1: Company Overview - Remitly Global operates as a modern remittance service with a user-friendly mobile application and competitive low transfer fees [3]. - The company currently holds a global market share of less than 10%, indicating significant room for revenue growth as it continues to capture market share from competitors [3]. Group 2: Financial Performance - Remitly's revenue grew by 25% year-over-year in the last quarter, showcasing its strong growth trajectory [3]. - The company has a market capitalization of approximately $2.8 billion, with trailing revenue exceeding $1.5 billion, indicating it is undervalued relative to its revenue [5]. - Despite being down 73% from its all-time highs, Remitly's business model exhibits strong unit economics, suggesting potential for future profitability once growth spending stabilizes [6]. Group 3: Market Position - The company is recognized for steadily gaining market share from legacy competitors, aligning with investment strategies that favor market-share gainers [2]. - Remitly's gross margin stands at 57.91%, reflecting its operational efficiency [2].