

In the end, simplicity, diversification, and low fees win out for this ideal portfolio centerpiece.

Small caps ripped higher in the first half of 2026. If you owned Global X Russell 2000 Covered Call ETF (CBOE:RYLD), you watched most of that rally through the window.

Small caps have been having a banner year, with the Russell 2000 outperforming the S&P 500 year-to-date. Some small-cap focused ETFs have also surpassed that benchmark.

If you hold the iShares Russell 2000 ETF (NYSEARCA:IWM), you already know it as the default small-cap ticker on every financial channel.

The S&P 500 is generating a positive return in 2026 despite volatility related to the U.S.-Iran conflict. The Russell 2000 has outperformed the S&P 500 by a wide margin because it's more insulated from the unstable geopolitical landscape.

The Russell 2000 is the primary index for small-cap stocks, similar to the S&P 500 for large-cap stocks. The performance gap between the Russell 2000 and the S&P 500 in the first half of the year is the largest since 2001.

Small caps have been much cheaper than large caps for a long time, but are starting to catch up.

Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the Vanguard Russell 2000 Index Fund ETF Shares (VTWO) is a passively managed exchange traded fund launched on September 22, 2010.