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Small-cap stocks were strengthening as traders renewed their outlook on the Trump administration’s pro-growth agenda. In recent weeks, U.S. markets have been roiled over uncertainty concerning President Donald Trump’s ability to push through pro-growth economic policies through Congress as the White House wades through political intrigue. However, the small-cap segment is highly levered to expectations that the administration could overhaul the U.S. tax policy.

“Furthermore, we like the way that the underlying benchmarks are built,” according to Morningstar. In the case of the Vanguard fund it tracks the CRSP U.S. Small Cap Index, which is a broad-based market-cap-weighted slice of the smallest segment of the U.S. stock market. It has sensible rules in place to mitigate unnecessary turnover within the portfolio, these are all things that score highly in our view.”

IJR tracks the widely followed S&P SmallCap 600 Index.

For more information on small-capitalization stocks, visit our small-cap category.