EXCLUSIVE: Small Caps At 'Most Attractive Relative Valuations' Since 1990s, Says Russell Investments' Paul Eitelman
Portfolio Pulse from Surbhi Jain
Paul Eitelman from Russell Investments highlights the attractiveness of small-cap stocks, despite their sensitivity to macroeconomic shifts. The Russell 2000 Index, tracked by ETFs like IWM, VTWO, and AVSC, offers opportunities due to low valuations compared to large caps. Eitelman advises a strategic allocation to small caps, emphasizing active management to navigate economic uncertainties.
September 09, 2024 | 4:24 pm
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POSITIVE IMPACT
The Avantis US Small Cap Equity ETF (AVSC) provides exposure to small-cap stocks, which are at their most attractive valuations since the 1990s. Active management is recommended to navigate economic uncertainties.
AVSC tracks small-cap stocks, which are currently undervalued. The ETF's performance is tied to economic conditions, but the potential for outperformance in a soft landing scenario is positive.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The iShares Russell 2000 ETF (IWM) is highlighted as a key vehicle for investing in small-cap stocks, which are currently at attractive valuations. However, the sector's sensitivity to economic shifts suggests a cautious approach.
IWM tracks the Russell 2000 Index, which is currently at attractive valuations. Despite macroeconomic uncertainties, the potential for small caps to outperform in a soft landing scenario suggests a positive short-term impact.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Vanguard Russell 2000 ETF (VTWO) is another option for investors looking to capitalize on the attractive valuations of small-cap stocks. The ETF is sensitive to economic conditions, requiring a strategic approach.
VTWO, like IWM, tracks the Russell 2000 Index. The current attractive valuations of small caps suggest a positive outlook, but economic sensitivity necessitates caution.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80