Invesco S&P SmallCap Health Care ETF Price & Performance (PSCH)

Investor confidence has faltered as key indicators signal caution. The Fear & Greed Index hit its lowest in a year, while the Buffett Indicator shows stock market valuations at 211% of GDP, well above norms. Defensive ETFs are gaining traction as volatility rises, offering a hedge against potential downturns.1

The VictoryShares US Small Mid Cap Value Momentum ETF (USVM) has outpaced its peer XSVM, with an 18% gain over the past year versus XSVM’s 4.2%. USVM’s focus on health care and diversified holdings contrasts sharply with XSVM’s heavy exposure to financial stocks, highlighting strategic differences in small-cap investing.2

U.S. stock futures climbed on Monday after last week’s market decline. Gains were led by the Russell 2000, up 0.82%. Consumer sentiment and home sales data remain weak, but optimism persists about the Federal Reserve maintaining steady interest rates in March. Analysts remain divided on the economy’s resilience.3