1 Reason to Buy Vanguard Russell 2000 ETF (VTWO)

There are some good reasons all stock investors should have small-cap exposure in their portfolios. For example, small caps inherently have more growth potential than their large-cap counterparts -- after all, most of the stocks currently in the large cap S&P 500 index started out as small caps.In addition, small-cap stocks are likely to disproportionately benefit from falling interest rates, which is widely expected to happen over the next couple of years. Small caps tend to be more debt-reliant than larger companies, so this could lower borrowing costs, and as risk-free investment returns fall (like Treasury yields), we could see money come off the sidelines and into more speculative companies.However, choosing small-cap stocks to invest in can be an intimidating task. That's why investing in an index fund like the Vanguard Russell 2000 ETF (NASDAQ: VTWO), which tracks the Russell 2000 small-cap benchmark index, could be a smart idea.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool