Small-Cap ETFs Take the Lead | Page 2 of 2 | ETF Trends

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.