Small-Cap Stocks Could Have a Great 2025 -- Here Are 2 ETFs You Can Buy Right Now

Small-cap stocks are trading for their lowest price-to-book valuation relative to their large-cap counterparts in more than 25 years. The average stock in the S&P 500 trades for 4.7 times book value and more than 27 times earnings, while the average stock in the Russell 2000 small-cap index has a price-to-book multiple of just 2 and a P/E ratio of around 17.With the Federal Reserve finally beginning a much-anticipated cycle of interest rate cuts, there's a solid case to be made that small-cap stocks are in a unique position to benefit. Instead of searching for the biggest winners in the small-cap world, here are two excellent low-cost ETFs you can buy and hold for the long term.The Russell 2000 is a broad index of small-cap stocks, and the Vanguard Russell 2000 ETF (NASDAQ: VTWO) allows investors to get exposure to it without having to choose individual winners. With a rock-bottom 0.10% expense ratio, it lets you keep most of your gains over time.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool