Wall Street analysts recommend Vanguard small-cap and iShares emerging markets ETFs
Updated
Updated · The Motley Fool · May 4
Wall Street analysts recommend Vanguard small-cap and iShares emerging markets ETFs
9 articles · Updated · The Motley Fool · May 4
State Street forecasts annual returns of 7.6% for the S&P SmallCap 600 and 7.5% for MSCI Emerging Markets over the next three to five years, versus 7.1% for the S&P 500.
The case for small caps rests on cheaper valuations and faster 2026 earnings growth, while emerging markets are backed by a weaker dollar, stronger earnings and lower valuations.
Analysts still say investors should prioritise S&P 500 funds because high rates could hurt smaller companies and US large-cap technology may keep benefiting most from the AI boom.
Will U.S. tech giants or emerging market suppliers capture the real profits from the AI revolution?
With China's property market in collapse, is the optimism for emerging market stocks misplaced?
Amid a real estate crisis and high interest rates, can the predicted small-cap renaissance truly last?