"The small caps are starting to get cheap again after the latest round of market selling concentrated in the AI growth names. Undoubtedly, the small and mid-caps can be a rather turbulent ride compared to the larger caps, but, regardless, investors looking to diversify or tilt their portfolios just a bit more in the direction of value might wish to capitalize on the recent wave of selling that's hit the smaller-cap scene of late."
"In this piece, we'll check in on a pair of small-cap ETFs, which, I think, might be the best way to play the smaller, underappreciated names after taking a bit of a spill for the month of November. At this juncture, I view a lot of the smaller, underrated names as oversold and potentially overdue for a bit of a bounce."
Small-cap stocks have become cheaper following market selling concentrated in AI growth names. Small and mid-cap equities typically exhibit greater volatility than large caps. Recent declines have created potential value opportunities for investors seeking diversification away from richly valued large-cap names. Small-cap ETFs offer broad, single-investment exposure to numerous underappreciated smaller companies. iShares Core S&P Small-Cap ETF (IJR) provides low-cost access to smaller American stocks, a 1.9% dividend yield, and a focus on profitable companies. IJR has retreated about 6% from this year's highs and carries an elevated beta, indicating possible further choppiness despite a potential bounce.
Read at 24/7 Wall St.
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