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4 High-Potential ETFs for 2026: Small Caps, Space Stocks, and More
Yahoo Finance· 2025-12-19 17:37
Group 1 - Hundreds of exchange-traded funds (ETFs) launched in the last year, complicating the investment landscape for investors [3] - Many ETF investors adopt a long-term strategy due to the automatic diversification and lower oversight requirements of ETFs [4] - The iShares Core S&P Small-Cap ETF (IJR) has over 25 years of history and offers broad exposure to more than 600 small-cap U.S. companies [5][8] Group 2 - IJR is diversified across sectors, with financials, industrials, and information technology being the most represented [5] - Small-cap stocks have significant growth potential but also carry substantial risk, which IJR mitigates through its diversified portfolio [6] - The recent interest rate cuts by the Federal Reserve are expected to lower borrowing costs, potentially stimulating growth for small-cap stocks in 2026 [6][8] Group 3 - The Procure Space ETF (UFO) focuses on companies involved in the space industry, holding just under 50 stocks and charging a higher annual fee of 0.75% [9] - UFO has delivered strong returns due to government contracts, reduced launch costs, and expanding commercial satellite use [8]