Moreover, the increased mergers and acquisitions activity has also bolstered the outlook for smaller companies.
“We’ve also seen significant merger activity in the small-cap market, which is going to put more of a bid into small caps,” Sanchez added. That “really isn’t fundamentally based, and so I do think you need to be careful of that.”
iShares Russell 2000 ETF
For more information on small-capitalization stocks, visit our small-cap category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own shares of IWM and SPY.