VB - Small Caps Stall But IJR's Valuation Remains Compelling
2024-03-23 06:18:24 ET
Summary
- Some AI-related stocks have created dispersion among US small-cap ETFs.
- iShares Core S&P Small-Cap ETF has flat performance so far in 2024 but offers an attractive valuation and potential upside based on a very low PEG ratio.
- The fund sports a diversified portfolio with exposure to growing segments of the economy, but also carries risks of cyclical exposure.
- I highlight key price levels to watch as momentum and relative strength are lackluster with IJR.
2024 has been a year of return dispersion among various US small-cap ETFs. The Vanguard Small-Cap Index ETF ( VB ) has performed the best, up 5% in YTD total return through intraday price action on Friday, March 22. The Russell 2000 Small-Cap ETF ( IWM ) is higher by nearly 3%. Flat on the year, however, is the iShares Core S&P Small-Cap ETF ( IJR )....
Small Caps Stall, But IJR's Valuation Remains Compelling