1 Russell 2000 ETF to Buy Ahead of the Small-Cap Bull Market
The Russell 2000 index represents approximately 2,000 of the smaller listed stocks in the U.S. Historically, it hasn't performed as well as the S&P 500 because it doesn't have as much exposure to fast-growing technology segments like cloud computing, enterprise software, and artificial intelligence (AI).
However, the Russell 2000 is up 7.4% in July alone, compared to a mere 1.5% gain in the S&P 500. Investors are increasingly bullish on the smaller end of the market because it will likely benefit the most from interest rate cuts, which are forecast to come before the end of the year.
Technically speaking, the Russell 2000 has been in a bear market since 2022. It won't officially enter a new bull market until it makes a new all-time high, but it only has to rise another 10.9% to get there. We've seen how quickly the Russell can make up ground recently, so if economic conditions turn in favor of small caps as expected, it won't take long for the index to move higher.
Source Fool.com
