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Benzinga
Benzinga
Business
Chandrima Sanyal

Small Caps, Big Comeback? ETFs Betting On America's Underdogs As Tax Tweaks And Technicals Align

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Having spent most of 2025 in the shadow of their big-cap counterparts, U.S. small-cap stocks might finally be ready to re-enter the limelight. A combination of friendly policy shifts, overlooked fundamentals, and bullish technical signals is encouraging investors to take a closer look at this long-overlooked asset class, and ETFs are the vehicle of choice for riding the revival.

From the iShares Russell 2000 ETF (NYSE:IWM) to deep-value and innovation-themed plays such as the Acquirers Deep Value ETF (NYSE:DEEP) and Invesco Nasdaq Future Gen 200 ETF (NASDAQ:QQQS), small-cap ETFs experienced a modest uptick in recent weeks. But is this merely a blip, or the start of something greater?

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