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Russell 2000 surges as small-cap value earnings accelerate
The Russell 2000 is up 19.5% year to date, while the Vanguard Small-Cap Value ETF VBR trades at a forward P/E of about 14.
Small-cap stocks are outperforming large-cap indexes in 2026, with the Russell 2000 up 19.5% year to date compared with the S&P 500's 10.5% gain, according to Yahoo Finance citing recent index performance.
The article attributes the strength to improved fundamentals, including accelerating earnings growth for small-cap companies, after years when valuations were supported but earnings growth lagged.
It highlights the Vanguard Small-Cap Value ETF, VBR, noting it trades at a forward price-to-earnings ratio of about 14, versus a 22 multiple for the Vanguard S&P 500 ETF, while emphasizing that value stocks can carry risks if business models have weakened.
The piece also points to forecasted earnings growth, saying S&P 600 small-cap earnings are projected to rise 17% in 2026 and 18% in 2027, providing what it calls a catalyst as value’s earnings component strengthens.
Latest closeS&P 500 7,709.96 ▼0.2%|Russell 2000 3,001.55 ▼0.6%