Is the Vanguard Russell 2000 Index Fund ETF a Buy Now?
Wondering if the leading Russell 2000 ETF deserves a spot in your portfolio? Be careful -- you'll need inhuman market timing to beat the broader market.
Investing can be super easy. Most of the time, it's hard to beat the wealth-building power of holding a simple S&P 500 (SNPINDEX: ^GSPC) index fund over the long haul. A low-fee exchange-traded fund (ETF) can do the job, such as the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) or the Vanguard S&P 500 ETF (NYSEMKT: VOO). Adding more funds to your investment over time is also helpful. And if that's all you ever do, you'll have a solid nest egg in a few decades.
Then again, the mighty S&P 500 isn't always the best of all possible choices. There are times when a tighter focus on small-cap stocks will serve you better. Buying a more targeted ETF like the Vanguard Russell 2000 Index Fund ETF (NASDAQ: VTWO) would be the stronger selection In those specific market moments.
Is the spring of 2025 one of those times? Let's check out the market conditions that can make the Russell 2000 ETF shine, and then I'll review how closely the current economy matches that description.
