Small-cap stocks – those with market capitalizations between $250 million and $2 billion – are becoming increasingly popular among both retail and institutional investors. Small caps have lagged behind large caps and the broader market for most of the last few years but, for several interesting reasons, they are returning to favor.
Investors willing to embrace the somewhat higher risks of investing in smaller companies should consider owning exchange-traded funds, or ETFs, that hold small-cap stocks. Small-cap ETFs are professionally managed by industry experts and provide a much greater degree of diversification than retail investors can achieve on their own.
To that end, here is an updated list of seven quality small-cap ETFs investors should consider buying today and holding through 2025 and beyond.
This post originally appeared at U.S. News & World Report.