Overview
- Vanguard’s Russell 2000 fund, VTWO, is up about 11.1% this year, topping the S&P 500, the Dow, and the Nasdaq-100.
- The Russell 2000 spreads its weight across sectors, with healthcare at 18.7%, industrials at 18.1%, financials at 17.2%, and only about 5.5% in its top 10 names.
- Many small caps earn most of their revenue in the U.S., which can cushion them from oil price shocks and market swings tied to Middle East tensions and the Iran war.
- Analysts expect S&P 500 earnings to grow about 15% year over year in the first quarter, with forecasts of 18% growth in 2026 and 16% in 2027.
- Yahoo Finance highlights Vanguard’s Total Stock Market fund, VTI, as a low-fee, under-$500 way to own the full U.S. market as leadership broadens beyond megacap tech.