Russell 2000 Stocks 'Trading At A Massive Discount' To Large Caps: Gabelli Funds' Kevin Dreyer
Portfolio Pulse from Surbhi Jain
Kevin Dreyer from Gabelli Funds suggests that small cap stocks, particularly those in the Russell 2000 index, are trading at a significant discount compared to large caps and are poised for a strong rally. This shift is attributed to the Federal Reserve's anticipated interest rate cuts. ETFs like iShares Russell 2000 ETF (IWM), Vanguard Russell 2000 ETF (VTWO), and Avantis U.S Small Cap Equity ETF (AVSC) are highlighted as ways to gain exposure to small caps.
August 26, 2024 | 8:07 pm
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The Avantis U.S Small Cap Equity ETF (AVSC) is identified as a way to gain exposure to small cap stocks, which are trading at a discount. The anticipated Federal Reserve rate cuts could lead to a rally in small caps.
AVSC provides exposure to small cap stocks, which are currently undervalued. The expected rate cuts by the Federal Reserve could act as a catalyst for a rally, benefiting AVSC.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
The iShares Core S&P Small-Cap ETF (IJR) is mentioned as an alternative way to invest in small cap stocks, which are currently undervalued compared to large caps. The Federal Reserve's rate cuts could boost small cap performance.
Although IJR does not track the Russell 2000, it provides exposure to small cap stocks, which are expected to benefit from the Federal Reserve's rate cuts and current undervaluation.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
The iShares Russell 2000 ETF (IWM) is highlighted as a key way to gain exposure to small cap stocks, which are currently trading at a significant discount to large caps. With the Federal Reserve's anticipated rate cuts, small caps are expected to rally.
IWM is directly linked to the Russell 2000 index, which is expected to benefit from the anticipated shift towards small cap stocks due to their current undervaluation and the Federal Reserve's rate cuts.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Vanguard Small Cap ETF (VB) is highlighted as a way to gain exposure to small cap stocks, which are trading at a discount. The Federal Reserve's anticipated rate cuts could lead to a rally in small caps.
VB provides exposure to small cap stocks, which are currently undervalued. The expected rate cuts by the Federal Reserve could act as a catalyst for a rally, benefiting VB.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
The Vanguard Russell 2000 ETF (VTWO) is mentioned as a popular option for investors looking to capitalize on the undervaluation of small cap stocks. The expected interest rate cuts by the Federal Reserve could further enhance its performance.
VTWO tracks the Russell 2000 index, which is expected to perform well as small caps are currently undervalued and the Federal Reserve is likely to cut rates, making it an attractive investment.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70