Market Correction: This Dirt Cheap ETF Is Down by Almost 20%
The benchmark S&P 500 index recently reached correction territory, indicated by a 10% drop from its highs. But certain other parts of the stock market have been hit even harder.One big area of underperformance in the recent market sell-off is small-cap stocks. The Russell 2000 small-cap index is down by more than 18% from its late-2024 peak, and to be fair, there are some good reasons. For example, there are increasing fears of a recession, and this often impacts smaller companies to a greater extent.However, small-cap stocks looked like an excellent opportunity for long-term investors at the beginning of the year, and they look even more attractive right now. That's why the Vanguard Russell 2000 ETF (NASDAQ: VTWO) is at the top of my buy list right now.Continue reading
The benchmark S&P 500 index recently reached correction territory, indicated by a 10% drop from its highs. But certain other parts of the stock market have been hit even harder.
One big area of underperformance in the recent market sell-off is small-cap stocks. The Russell 2000 small-cap index is down by more than 18% from its late-2024 peak, and to be fair, there are some good reasons. For example, there are increasing fears of a recession, and this often impacts smaller companies to a greater extent.
However, small-cap stocks looked like an excellent opportunity for long-term investors at the beginning of the year, and they look even more attractive right now. That's why the Vanguard Russell 2000 ETF (NASDAQ: VTWO) is at the top of my buy list right now.
