The best small-cap 澳洲幸运5开奖号码历史查询:index funds are the iShares Russell 2000 ETF (IWM), SPDR S&P 600 Small Cap ETF (SLY), Vanguard Russell 2000 ETF (VTWO) and Vanguard Small Cap 澳洲幸运5开奖号码历史查询:Index Fund (VB). These funds are rated highly by U.S. News & World Report in terms of liquidity, costs and diversification. These are all 澳洲幸运5开奖号码历史查询:exchange-traded funds (ETFs). IWM is the most tracked and traded.

Many investors prefer watching small-cap funds to more mainstream market indexes such as the 澳洲幸运5开奖号码历史查询:S&P 500 or 澳洲幸运5开奖号码历史查询:Do🍬w Jones Industrial Average (DJIA), feeling they are a better representation of the economy and overall 澳洲幸运5开奖号码历史查询: stock market. This is because small-cap companies are more sensitive to 澳洲幸运5开奖号码历史查询:economic growth and are domestically focused.

Small caps are unique in that they are highly 澳洲幸运5开奖号码历史查询:leveraged to the economy. These companies have smaller 澳洲幸运5开奖号码历史查询:balance sheets and are more exposed to the 澳洲幸运5开奖号码历史查询:economic cycle. During 澳洲幸运5开奖号码历史查询:recessions, many may go bankrupt. This is in contrast to mid-cap and 澳洲幸运5开奖号码历史查询:large-cap companies that have more established operations a🅠nd reserves to get through and thrive during turbulent times.

For these reasons, small caps are considered a 澳洲幸运5开奖号码历史查询:leading indicator for the economy. When traders become enthused about prospects for econওomic growth, they move into small caps. When they are worried about a slowdown, they start to sel🍃l small caps first.

Large-cap companies tend to do business all over the world. More than half of the revenues of the firms in the S&P 500 come from abroad. In contrast, more than 90% of the revenues o𝐆f small caps comes in domestically. Therefore, periods of relative outperformance by small caps over large caps is meaningful in implying domestic economic strength.