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Market Update

You Can Do Better Than the Russell 2000

Other U.S. small-cap indexes are worth considering.

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U.S. small-cap stocks went on a tear in November 2020 in the wake of the U.S. presidential election and favorable coronavirus vaccine news.

Investors betting on small-cap stocks' continued outperformance may consider investing in open-end funds and exchange-traded funds that follow U.S. small-cap indexes. One of these is the Russell 2000 Index, which iShares Russell 2000 ETF (IWM) replicates. It's the second-largest U.S. small-cap fund with over $51 billion in net assets as of Nov. 30.

Sachin Nagarajan does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.