(BNKD), (IMCG) - Let s Take A Look At This Weeks Highest Performing ETFs 4/30 benzinga.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from benzinga.com Daily Mail and Mail on Sunday newspapers.
If the vaccines see off the Covid-19 pandemic, smaller companies could lead the charge out of the lockdown-induced recession.
Many private investors instinctively shy away from smaller companies, but there are ways of investing in this sector without taking outsize risks, and the potential rewards could make it worthwhile.
In recent years, big has been beautiful, with US mega-cap tech stocks such as Amazon, Apple, Microsoft and Google-owner Alphabet driving stock market growth as their valuations soared past the $1 trillion mark.
However, many analysts believe they now look expensive and are vulnerable to stiffer regulation and higher corporate taxes under US President Joe Biden.
Small-cap ETFs keep the rally going
Small-cap exchange-traded funds surged on Thursday, extending a winning streak that’s lasted several months. Small-cap funds with a growth tilt were the big winners: the iShares Morningstar Small-Cap Growth ETF was up 1.2% midday, and the iShares Russell 2000 Growth ETF gained 1%. The Schwab U.S. Small-Cap ETF was up 0.5%, and the Vanguard S&P Small-Cap 600 ETF gained 0.4%. In contrast, the S&P 500 was up 0.4% Thursday. Small-caps have gained as investors have seen bigger companies as increasingly expensive, and looked for opportunity among some of the laggards of the year. In the past three months, these four funds have gained from 26% – 30%, versus a 10.6% rise for the S&P 500. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Small-cap ETFs keep the rally going - MarketWatch marketwatch.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from marketwatch.com Daily Mail and Mail on Sunday newspapers.