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3 Small-Cap ETFs That Could Be Big Rate-Cut Winners


Small-cap stocks have underperformed large caps for well over a decade, and trade at a massive relative valuation discount. However, the falling-interest rate environment could provide a multiyear tailwind to small caps and could lead to major outperformance.

It can be difficult to choose individual small-cap stocks to invest in, but that's OK. There are some excellent small-cap ETFs that can allow you to get broad exposure to smaller companies or to invest in a certain type of small cap. Here are three in particular that look attractive right now.

The Russell 2000 is widely considered to be the best indicator of how small-cap stocks are performing, and one great way to invest in it is the Vanguard Russell 2000 ETF (NASDAQ: VTWO).

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Source Fool.com

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