The bank expects the Russell 2000 to deliver 14% returns in the next year vs. 9% for the S&P 500.
Goldman SachsGoldman's expectation for 14% returns in the coming year partly stems from their call for 1.4% GDP growth over that period.
"More broadly, this should support US economic activity, the primary driver of Russell 2000 returns."
Investors can gain broader exposure to small-cap stocks through exchange-traded funds like the iShares Russell 2000 ETF (IWM), the Schwab US Small-Cap ETF (SCHA), and the Vanguard S&P Small-Cap 600 ETF (VIOO).
Additionally, the research firm Morningstar listed the following small-cap ETFs as its top picks in a June 20 note: Vanguard Small-Cap ETF (VB), iShares Core S&P Small-Cap ETF (IJR), and Schwab U.S. Small-Cap ETF (SCHA).
Persons:
Russell, Goldman Sachs, Lily Calcagnini, Calcagnini, Goldman, they're, Morningstar
Organizations:
Federal Reserve, pharma, Schwab, Vanguard, Schwab U.S
Locations:
United States