Small-cap stocks, with market capitalization between $250 million and $2 billion, are risky yet tend to outperform large-cap stocks due to nimble management and less bureaucracy.
Russell 2000 is the main benchmark index for small-cap companies, managed by FTSE Russell Group. ETF options like iShares Russell 2000 ETF and Vanguard Russell 2000 Index Fund ETF are popular for investing in small-caps.
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