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Is the Vanguard Russell 2000 Index Fund ETF a Buy Now?
The Russell 2000 is supposed to outperform in bull markets, but that hasn't been the case recently. Since the start of 2023, the Vanguard Russell 2000 Index Fund (NASDAQ: VTWO) -- an exchange-traded fund (ETF) -- is up just 19% compared to a 55% gain for the S&P 500. The small-cap index tends to outperform in bull markets because its components are more volatile and have more growth potential. However, in the current bull market, the gains have been dominated by artificial intelligence (AI) stocks such as the "Magnificent Seven," and relatively little of the spoils have gone to small-cap stocks.With tariffs shaking up the market and the AI boom entering its next stage, that could change. Let's take a look at what would drive small-cap stocks higher and whether you should buy the Vanguard Russell 2000 Index ETF today.Continue reading
The Russell 2000 is supposed to outperform in bull markets, but that hasn't been the case recently. Since the start of 2023, the Vanguard Russell 2000 Index Fund (NASDAQ: VTWO) -- an exchange-traded fund (ETF) -- is up just 19% compared to a 55% gain for the S&P 500.
The small-cap index tends to outperform in bull markets because its components are more volatile and have more growth potential. However, in the current bull market, the gains have been dominated by artificial intelligence (AI) stocks such as the "Magnificent Seven," and relatively little of the spoils have gone to small-cap stocks.
With tariffs shaking up the market and the AI boom entering its next stage, that could change. Let's take a look at what would drive small-cap stocks higher and whether you should buy the Vanguard Russell 2000 Index ETF today.
