What should I consider before betting on a small caps rebound?
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It’s easy to feel like small caps are "due" for a win after being stuck in the shadows for so long. An ETF like AVUV definitely has the potential to skyrocket if the tide turns, but it’s a bit of a double-edged sword. These smaller companies are much more sensitive to things like interest rate hikes and shifts in the economy, so if things get bumpy, they tend to feel the hit first.
On the flip side, you have VOO. It’s not flashy, but it’s the "Old Reliable" of the investing world. Because it tracks the S&P 500, you’re holding the giants of the U.S. market. It might not give you that massive "jackpot" feeling during a small-cap rally, but it won't keep you up at night quite as much when the market gets shaky.
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