While the stock market is expected to remain volatile on concerns over the Federal Reserve’s plan to raise interest rates several times this year to control inflation, unexpected fourth-quarter GDP growth suggest steady economic growth this year.
Despite being more volatile than their larger counterparts, small-cap stocks have historically delivered better growth. They benefit in an expanding economy. And investors' interest in small-cap stocks is evident in the Invesco S&P SmallCap 600 Equal Weight ETF’s (EWSC) 10.9% returns over the past year, which has been a period of recovery for the U.S. economy.
