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Vanguard Forecast: US Small Caps to Outperform Large Caps Over Next 30 Years

The Motley Fool +1 ·

IWM
IWM iShares Russell 2000 Index Fund
$271.37 -1.93%
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  1. 1Vanguard forecasts an annual excess return of 2.6% for US small caps compared to US large caps over the next 30 years.
  2. 2The iShares Russell 2000 ETF holds shares in nearly 2,000 companies.
  3. 3Small caps may be poised to deliver significant returns to long-term investors.

So what's the key point?

Vanguard expects small companies to earn 2.6% more than large companies over the next 30 years. This means they could provide large profits for people who invest for the long term.

Source The Motley Fool +1 · View original ↗

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