The small-cap stocks, as measured by the Russell 2000 Index, closed 2014 with a gain of 3.5 percent. However, when compared to its larger peers, the index greatly underperformed for the first time in years. Through February, the Russell 2000 is up 2.4 percent, slightly outperforming the S&P 500.
The good news is that the valuations for the smaller stocks have come back down to reasonable levels, even as the index hit a new all-time high this week. Looking ahead for the remainder of the year, there is a decent probability investors will look for investment opportunities in higher-reward stocks and small-cap stocks fit this bill.
A factor that is often overlooked is the fact the small-cap stocks will be less affected by a rising U.S. dollar due to the high amount of sales within the U.S.
With the U.S. Dollar Index near a multi-year high, the small-cap stocks should be able to ...
/www.benzinga.com/etfs/broad-u-s-equity-etfs/15/03/5293173/small-cap-etfs-set-to-outperform-again alt=Small-Cap ETFs Set To Outperform Again>Full story available on Benzinga.com
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