The best time to jump into small stocks is during the months before a recession ends, and if you believe the recession is still in play, then small-caps could still perform. Look at ETFs such as iShares S&P SmallCap 600 Index (NYSEArca: IJR), Schwab U.S. Small-Cap (NYSEArca: SCHA) or WisdomTree SmallCap Dividend (NYSEArca: DES). If you want to add some power to your small-cap exposure, think about ProShares Ultra SmallCap600 (NYSEArca: SAA). You can find and research all small-cap ETFs in the ETF Analyzer! [Revenue Weighted ETFs Are Another Way to Get Small-Cap Exposure.]
For more information on small-caps, visit our small-cap category.
For full disclosure, Tom Lydon’s clients own SCHA.
Max Chen contributed to this article.