Vanguard Russell 2000 Index Fund Price & Performance (VTWO)

The Russell 2000 index, a key benchmark for small-cap stocks, has dropped over 18% from its late-2024 peak, outpacing the broader S&P 500's 10% decline. Analysts suggest this sector may rebound as interest rate cuts and favorable valuations emerge, presenting potential opportunities for long-term investors.123

The Vanguard Russell 1000 Growth ETF has declined nearly 8% year-to-date, but analysts view this as a buying opportunity. With a portfolio heavily weighted in tech giants like Apple and Microsoft, the fund is expected to benefit from AI-driven growth over the next decade.42

Small-cap stocks, represented by the Russell 2000, are underperforming due to recession concerns and higher reliance on borrowing. However, historical data suggests these stocks could see significant gains following interest rate cuts, making ETFs like Vanguard Russell 2000 an appealing option for investors.156