One Vanguard Index Fund to Buy That May Beat the S&P 500 by 100% in the Next Few Years, According to a Wall Street Analyst

Last November, Fundstrat analyst Tom Lee told CNBC that small-cap stocks are headed for a prolonged period of outperformance compared to the large-cap S&P 500 (SNPINDEX: ^GSPC). "I think small caps could, in the next couple of years, outperform by more than 100%," Lee said.The opposite has actually happened since he made that prediction. The Russell 2000, a benchmark for small-cap stocks, has tumbled 16%, while the S&P 500 has declined only 8%. However, the investment thesis Lee outlined late last year remains compelling.Here's what investors should know.Continue reading

Mar 15, 2025 - 08:32
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One Vanguard Index Fund to Buy That May Beat the S&P 500 by 100% in the Next Few Years, According to a Wall Street Analyst

Last November, Fundstrat analyst Tom Lee told CNBC that small-cap stocks are headed for a prolonged period of outperformance compared to the large-cap S&P 500 (SNPINDEX: ^GSPC). "I think small caps could, in the next couple of years, outperform by more than 100%," Lee said.

The opposite has actually happened since he made that prediction. The Russell 2000, a benchmark for small-cap stocks, has tumbled 16%, while the S&P 500 has declined only 8%. However, the investment thesis Lee outlined late last year remains compelling.

Here's what investors should know.

Continue reading