Market Analysis by covering: S&P 500, US Small Cap 2000, iShares Russell 2000 ETF, NASDAQ Composite. Read 's Market Analysis on Investing.com ...

Small-Cap Investing: Time for a Fundamental Approach?ETF Trends is now VettaFi. Read More -- Macroeconomic conditions for 2026 may seem a little bit shaky, but one area where advisors and investors might find great opportunities is actually within small-caps.Sure, this is likely not the first year that folks are hearing that small-caps might start threatening to outperform their large-cap counterparts. However, we're starting to see the pieces fall into place to help make that theory a reality.While the Fed ...

Core Viewpoint - The Russell 2000, a small-cap index, has shown strong performance at the start of 2026, outperforming the S&P 500 in the first 14 trading days of the year, indicating a potential shift in market dynamics favoring small-cap stocks [1][4]. Performance Comparison - The Russell 2000 has built a significant lead over large-cap stocks in the first three weeks of 2026, contrasting its underperformance in the previous five years [2][4]. - Historically, the S&P 500 has outperformed the Russell 2000, particularly during the AI boom, but the current trends suggest a possible reversal in 2026 [4]. Valuation Insights - The S&P 500 has seen a price-to-earnings (P/E) ratio of 28, making it one of the most expensive periods in its history, while the Russell 2000 ETF trades at a P/E ratio of 19.5, representing a discount of about one-third compared to the S&P 500 [5][6]. - For the Russell 2000 to match the valuation of the S&P 500, it would need to increase by approximately 50%, which may encourage a rotation from large-cap to small-cap stocks [6][7]. Interest Rate Impact - Small-cap stocks are more sensitive to macroeconomic factors, particularly interest rates. The Russell 2000 has increased by 17% over the last six months due to three rate cuts by the Federal Reserve, lowering the benchmark rate by 75 basis points [8]. - The Federal Reserve is currently forecasting one additional rate cut this year, but there is potential for more cuts, which could further benefit small-cap stocks [9]. Investment Opportunities - The iShares Russell 2000 ETF (IWM) is the largest small-cap ETF with net assets of approximately $75 billion, providing a straightforward way to gain exposure to small-cap stocks [10]. - Individual small-cap stocks such as Amplitude, a digital product analytics software company, and Innodata, a data-labeling specialist, are highlighted as potential breakout candidates for 2026 due to their growth prospects [11]. - The overall outlook for small-caps in 2026 appears positive, with various investment vehicles available for capitalizing on the expected market rotation [12].

Core Insights - The SPDR Dow Jones Industrial Average ETF (DIA) and iShares Russell 2000 ETF (IWM) represent two distinct investment strategies, with DIA focusing on concentrated blue-chip stocks and IWM targeting a broader range of small-cap stocks [5][6][9] Group 1: ETF Characteristics - DIA tracks the Dow Jones Industrial Average, holding only 30 blue-chip U.S. stocks, while IWM captures the performance of approximately 1,954 U.S. small-cap stocks [4][7] - DIA has a sector exposure heavily weighted towards financial services (28%), technology (20%), and industrials (15%), whereas IWM has a more balanced sector allocation with healthcare (19%), financial services (16%), and technology (16%) [2][5] - DIA has a lower expense ratio compared to IWM and currently offers a higher dividend yield, making it appealing for investors seeking lower costs and higher payouts [3][8] Group 2: Performance Metrics - Over the last five years, DIA has shown greater total return and less volatility, with a maximum drawdown of -21% compared to IWM's -32% [8] - Investors may prefer DIA for its combination of lower costs and higher yield, while IWM may attract those looking for diversification and exposure to small and mid-cap stocks [9]

Key Points The "Magnificent Seven" stocks have all generated gains of at least 540% over the past decade. Their high valuations, however, have given investors some cause for concern. Small-cap stocks carry risk, but within a diverse exchange-traded fund, it is drastically reduced. 10 stocks we like better than iShares Trust - iShares Russell 2000 ETF › The "Magnificent Seven" stocks are the leading tech giants in the world, whose valuations eclipse more than $1 trillion in market cap today. Alpha ...

Strong productivity growth, steady regional bank fundamentals and accelerating artificial intelligence adoption may be laying the groundwork for a more durable small-cap rally than investors have seen in years.The small-cap benchmark – tracked by the iShares Russell 2000 ETF (NYSE:IWM) – has repeatedly pushed to record highs this month, outperforming large-cap indices — a rare dynamic after years of narrow market leadership dominated by mega-cap stocks.Despite those gains, the macro and fundamental case for ...

Quick Read Investors and traders will look forward to a big release of fourth-quarter earnings for this holiday-shortened trading week. Last week’s start to the earnings season was a mixed bag from the big financial stocks, but overall positive. Expect some volatility to creep back in this week as earnings reports pile up and geopolitical issues return. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here. ...

Core Insights - The Simplify Target 15 Distribution ETF aims to generate monthly income through a combination of short-duration U.S. government bonds and income-oriented option spread strategies on equity indexes and ETFs [1] Group 1: Investment Strategy - The fund primarily invests in U.S. Treasury bills, notes, and bonds, as well as fixed income ETFs that hold similar securities [1] - The interest-rate sleeve is managed toward an average duration of two years or less, with a focus on maximizing yield within that constraint [1] - The adviser employs partially hedged put spreads using over-the-counter options, swaps, and forwards on large-cap, growth, and small-cap equity references [1] Group 2: Target Distribution and Risk Management - The strategy targets an aspirational annualized distribution rate of 15% [1] - Option strikes, maturities, and notionals are selected using a proprietary risk framework, with positions adjusted as options mature or after significant movements in reference assets [1]

Core Viewpoint - Benjamin Edwards Inc. increased its holdings in iShares Russell 2000 ETF by 23.9% in Q3, indicating growing institutional interest in small-cap investments [2] Institutional Investment Activity - Quaker Wealth Management LLC raised its stake in iShares Russell 2000 ETF by 211.1% in Q2, now owning 120 shares valued at $26,000 after acquiring an additional 228 shares [3] - Opal Wealth Advisors LLC, Proathlete Wealth Management LLC, Pingora Partners LLC, and Beacon Capital Management Inc. all established new positions in iShares Russell 2000 ETF during Q2, with investments ranging from approximately $28,000 to $35,000 [3] Price Performance - iShares Russell 2000 ETF opened at $260.23, with a market cap of $76.57 billion, a P/E ratio of 17.69, and a beta of 1.13 [4] - The ETF has experienced a 1-year low of $171.73 and a 1-year high of $261.56, with a 50-day simple moving average of $247.14 and a 200-day simple moving average of $237.86 [4] Fund Overview - iShares Russell 2000 ETF aims to replicate the price and yield performance of the Russell 2000 Index, which measures the performance of the smallest 2,000 issuers in the Russell 3000 Index [5]

Core Viewpoint - Small-cap stocks are expected to outperform large-cap stocks in 2026, reversing a 15-year trend of underperformance, as historical patterns suggest cycles of market leadership between small and large caps [2][5][6]. Performance Comparison - In 2025, small-cap stocks, represented by the Russell 2000, returned 12%, while the S&P 500 rose by 17%, indicating a slight underperformance [2]. - Historically, small caps have outperformed large caps by an average of 2.85% annually since 1927, with small caps winning two-thirds of the time over any 10-year period [3][4]. Historical Context - The S&P 500's average annual gain since 1927 is 10.37%, which would have turned an initial investment of $100 into $1.75 million, while including small caps' outperformance would increase that figure to $21.8 million [4]. - The current era of large-cap dominance is noted as the longest on record, lasting from 2011 to 2026 [5]. Future Outlook - Major financial institutions, including Vanguard and Invesco, forecast significant upside potential for small caps in 2026, with small caps being viewed as attractively valued [7]. - Analysts predict that the end of large-cap dominance may occur in 2026, with small caps poised to take the lead [6]. Factors Supporting Small-Cap Performance - Excessive valuations of large caps may lead to a downward pull on their performance, while small caps could benefit from falling interest rates, which are anticipated to decrease by late April 2026 [8]. - Small caps are more reliant on floating-rate debt, allowing them to refinance more easily at lower borrowing costs, enhancing their upside potential [9]. - Historically, small-cap companies have shown resilience during recessions, benefiting from lower interest rates and their ability to adapt to changing economic conditions [10]. Investment Vehicle - The iShares Russell 2000 ETF (NYSE: IWM) provides exposure to nearly 2,000 small-cap companies and has achieved average annual gains of 8.05% since its inception in May 2000 [11][12]. - The fund charges a management fee of 0.19%, which is lower than the industry average, making it a cost-effective option for investors looking to capitalize on a potential small-cap resurgence [13].