Why I Will Never Sell This Small-Cap ETF
After years of lagging the S&P 500, small caps are finally having a moment again. While large caps are still mostly flat on the year, the iShares Core S&P Small Cap ETF (NYSEMKT: IJR) is up more than 7% year to date (as of March 3, 2026).
The artificial intelligence (AI) narrative has played a big part in this. The market has begun looking at things through the lens of how industries will be disrupted by AI, not how profitable it can make the big tech companies. That has led to a major rotation away from tech and into more undervalued areas of the economy. Small caps fall into that group.
Given how long they've underperformed large caps, small caps could finally be in line for an extended stretch of leadership. Here's the investment case.
Source Fool.com
