Best Small-Cap ETFs for 2020
You may have seen small-cap stocks discussed as a great source of investment ideas if you're looking for the big winners of the future. I'm also intrigued by their potential to help you invest amid an uncertain world economy. While smaller companies can be riskier because they lack the resources of large global operations, they're also more insulated from global economic conditions. Think of a small bank operating in a few states, versus a corporation like Bank of America that has operations all over the world. This insulation helps make small-caps a good idea for any portfolio.
While you could research a few small-cap stocks to invest in, the diversity of an exchange-traded fund, or ETF, is well worth examining if you're just getting started. Let's look at a few.
While growth focused funds carry more risk, they also higher potential returns. The iShares Russell 2000 Growth ETF (NYSEMKT: IWO) aims to track the Russell 2000, providing exposure to the small-cap markets. This is an ideal play for 2020 if you believe that the current economic cycle can keep going.
Source Fool.com
