Small-cap exchange-traded funds (ETFs) have had it rough in recent years. That's partly because the majority of the market's gains have come courtesy of high-flying mega-cap stocks that, by definition, are not included in the small-cap benchmark Russell 2000 Index.Small caps were also under pressure from high interest rates. Smaller companies rely more on debt than large-cap stocks do, which makes them especially sensitive to rates. They also tend to be heavily reliant on domestic consumer spending, which t ...

Small-cap stocks are flashing a compelling bullish signal, presenting a potential rally opportunity as earnings accelerate, valuations remain attractive, and the market anticipates significant interest rate cuts.Are Small-Caps Ready To Challenge Mega-Cap Dominance?This confluence of factors, highlighted by data compiled from LSEG Data & Analytics, Bloomberg, and Barclays Research and shared by X user @WallStJesus, suggests a fundamental shift that could challenge the long-standing dominance of mega-cap stoc ...