Like most investors, one of your top goals has been to enjoy a financially secure retirement at whatever age you choose. That being the case, it stands to reason that your retirement “nest egg” should ideally generate above-market returns, often with below-market risk.
I’ve found that small-cap stocks offer the best opportunities, especially nowadays.
“The big thing is that recession fears have receded, and with that people have felt comfortable taking on more risk,” Steven DeScantis, equity strategist at Jefferies told MarketWatch.
To gain the most exposure to small cap stocks, ETFs are an option.
Each offers diversification among some of the top small cap stocks in the market.
Instead of spending thousands of dollars diversifying, you can spend a fraction of the cost on an ETF that offers ample exposure.
iShares Russell 2000 ETF (IWM)
Since the start of 2019, the ETF has run from $120 to nearly $160. The IWM hold trades in Five Below (FIVE), Etsy Inc. (ETSY), Cree Inc. (CREE) and Entegris Inc. (ENTG) for example.
iShares S&P Small Cap 600 Growth ETF (IJT)
Since the start of 2019, the ETF has run from $150 to nearly $185. The IJT holds trades in Trex Inc. (TREX), Neogen Corporation (NEOG), Stamps.com Inc. (STMP) and Green Dot Corporation (GDOT) for example.
iShares Core S&P Small Cap ETF (IJR)
Since the start of 2019, the ETF has run from $64 to nearly $81. The ETF has holdings in Ligand Pharmaceuticals (LGND), Neogen Corporation (NEOG), CACI International (CACI) and HealthEquity Inc. (HQY) for example.