Investment in this ETF may receive significant funds during Trump's 2025 presidency.
Down-and-Dirty Take on Small Biz Boom Post-Trump Wins
The Trump era has cranked up, and businesses across the US are scrambling to predict the impact. But while political slugfests rage on, it's the Fed and its monetary policies that'll truly shape the market landscape. And guess who's set to reap the biggest benefits? You got it — small companies.
Why? Well, smaller outfits are typically saddled with variable interest rates. When the Fed slashes rates, they bloom. That's right, buckle up, fellow small-cap entrepreneurs, we're chugging full steam ahead!
The L&G US Small Cap ETF: Your Post-Election Business Partner
In case you've been channeling your inner hermit lately, let's introduce you to a top-tier ally: the L&G Russell 2000 US Small Cap Quality ETF. This bad boy filters out the crème de la crème of quality companies from the Russell 2000 index, giving them a leg up in the ETF. Since 2018, it's been consistently kicking butt, thrashing the Russell 2000 index with its carefully curated selection of roughly 1035 companies.
Translation: It's a high-quality, high-performing ETF that's got your back.
Some of its top-tier players include US investment firm Hamilton Lane and Lantheus, specialists in radiopharmaceutical oncology and precision diagnostics. Alkermes, the biopharmaceutical company focused on developing treatments for psychiatric and neurological disorders, also makes an appearance. This ETF has been a shining star, boasting a smashing one-year gain of 42 percent and a thunderous 132 percent five-year growth.
Now, if you're of the curious sort, you can find the original article splayed out in the fourth issue of BÖRSE ONLINE here. If you fancy reading about AI's spooky predictions for which stocks will skyrocket to astronomical heights by 2025, click here.
Tech Talk
To fully appreciate the L&G Russell 2000 US Small Cap Quality ETF, it's crucial to understand some key factors relevant to small-cap US stocks in our current economic situation.
Performance and Factors
- The Russell 2000 index, the ETF's main squeeze for small-cap exposure, has displayed a yen for macroeconomic shenanigans, with a particular fondness for trade policies and interest rates.
- The growth crew, those swashbuckling companies in pursuit of prosperity, have outperformed value-focused duds in the current climate.
- In a low-interest-rate playground, small-cap companies thrive, benefitting from reduced borrowing costs.
- Small-cap earnings growth often outpaces large-cap counterparts, making them dreamy destinations for those seeking growth opportunities.
- ETFs focusing on "quality" draw attention to financially healthy, stable companies, thereby lowering risks associated with smaller companies.
Market Vibes
- Today's market environment is marked by a mounting debt-load among companies featured in indices like the Russell 2000, with interest rates playing a balancing act.
- Small-cap stocks have a knack for playing catch-up during periods of economic recovery or when interest rates settle down. However, their performance is largely swayed by broader economic conditions and market sentiments.
Investing in the L&G Russell 2000 US Small Cap Quality ETF could be a wise decision for small-business owners, as this high-performing ETF specializes in small companies and has consistently outperformed the Russell 2000 index since 2018. Additionally, in a low-interest-rate environment, small-cap companies, such as those included in the ETF, thrive due to reduced borrowing costs, making them attractive options for those seeking growth opportunities in the finance sector.
