Vanguard's small-cap ETFs offer diversified exposure as investors position for potential long-term market opportunities. For much of the past three years, large technology companies dominated Wall Street as investors poured money into artificial intelligence leaders. However, 2026 has marked a notable change in market leadership.
Small-cap stocks have significantly outperformed the broader market, recording their strongest relative performance against the S&P 500 in more than two decades. The shift has prompted investors to look beyond mega-cap technology companies and reconsider opportunities among smaller businesses trading at more attractive valuations. As interest in the sector grows, Vanguard's range of small-cap exchange-traded funds (ETFs) is receiving renewed attention from investors seeking diversified exposure.
