Wed, November 27, 2024
Tue, November 26, 2024

The Best Small-Cap ETF to Buy Right Now (and One Intriguing Alternative)

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The SPDR S&P 600 Small Cap Growth ETF ( SLYG -0.98%) targets companies exhibiting strong growth characteristics such as accelerating earnings, robust sales growth, and high return on equity. The fund has posted a solid 9.25% average annual return over the prior five years.
The article from The Motley Fool discusses the performance and potential of small-cap ETFs, focusing on two specific funds: the Vanguard Small-Cap ETF (VB) and the iShares Russell 2000 ETF (IWM). It highlights that small-cap stocks, which are often overlooked, can offer significant growth opportunities, especially in a recovering economy. The Vanguard Small-Cap ETF is praised for its low expense ratio, broad diversification across over 1,400 small-cap stocks, and its historical performance, making it a recommended choice for investors looking for exposure to small-cap companies. Conversely, the iShares Russell 2000 ETF, while also providing access to small-cap stocks, is critiqued for its higher expense ratio and less favorable performance metrics compared to VB. The article suggests that while both ETFs have their merits, the Vanguard Small-Cap ETF stands out as the better investment option due to its cost efficiency and track record.

Read the Full The Motley Fool Article at [ https://www.fool.com/investing/2024/11/27/the-best-small-cap-etf-to-buy-right-now-and-one-in/ ]