Is Vanguard Russell 2000 ETF a Millionaire Maker?
Most of the stock market's performance in recent years has been driven by large companies -- and it isn't just the megacap tech stocks collectively referred to as the "Magnificent Seven." Meanwhile, small-cap stocks have fallen behind.
In fact, small-cap stocks have collectively underperformed the S&P 500 by 55 percentage points over the past five years, and by 125 percentage points over the past decade. The last time small-caps traded at this much of a valuation discount relative to large caps on a price-to-book value basis was the late 1990s.
However, there's a good reason to believe the gap between small caps and large caps will narrow in the next few years. That's why the Vanguard Russell 2000 ETF (NASDAQ: VTWO) could be worth a closer look right now. Not only could the index fund outperform over the next few years, but it could be an excellent entry point for long-term investors looking to build wealth.
Source Fool.com
