As interest rates continue to fall, investors may be looking for opportunities to harness the rebound potential of small-cap stocks. Here are three ETFs that could be worth considering in this environment.
Small-cap stocks have historically outperformed large-cap stocks during periods of falling interest rates. This is because smaller companies tend to be more nimble and able to adapt quickly to changing economic conditions. As a result, investors may see better returns by investing in small-cap ETFs during times of falling rates.
One option to consider is the iShares Russell 2000 ETF (IWM), which tracks the performance of the Russell 2000 Index. This ETF provides exposure to a broad range of small-cap stocks and could benefit from a rebound in this segment of the market.
Another ETF to keep an eye on is the Vanguard Small-Cap ETF (VB), which tracks the performance of the CRSP US Small Cap Index. This ETF offers diversified exposure to small-cap stocks and could be a good way to capitalize on the potential for a rebound in this sector.
Lastly, the SPDR S&P 600 Small Cap ETF (SLY) is another option to consider. This ETF tracks the performance of the S&P SmallCap 600 Index and provides exposure to a diverse range of small-cap stocks.
Overall, small-cap stocks could be poised for a rebound in the current environment of falling interest rates. By considering ETFs like IWM, VB, and SLY, investors may be able to take advantage of the potential upside in this segment of the market. DailyBubble believes that small-cap ETFs could offer a compelling opportunity for investors looking to capitalize on the rebound potential in falling rates.