4 Small-Cap Powerhouses That Skyrocketed in June

investing.com:

While the technology-focused Nasdaq and the Japanese Nikkei 225 have had all the attention due to their impressive rallies this year, it's important to redirect our focus towards another category of stocks that have been performing exceptionally well, particularly in recent times.

Enter the realm of small-cap companies. These companies, with market capitalizations typically ranging between $300 million and $2 billion in the United States, have demonstrated strong performance relative to the broader market.

In Europe, the threshold for defining a company as a small cap would be €3 billion. Beyond these levels, we find mid-cap and large-cap companies.

In the United States, small companies constitute over 60% of the market, while in Europe, their representation is slightly above 50%. This highlights the significance of the small-cap sector, making it an area worth monitoring.

Various small-cap indexes exist to track the performance of these companies. In Europe, small caps can be tracked by the EURO STOXX Small Cap, while in the United States by the S&P 600 Small Cap and the US Small Cap 2000.

Investing in small caps can be accomplished through specialized investment vehicles such as mutual funds and ETFs. Here are a few examples:

Invesco S&P SmallCap 600 Pure Value ETF (NYSE:RZV)

SPDR S&P Emerging Markets Small Cap ETF (NYSE:EWX)

A compelling illustration of the strength of small caps lies in the S&P 600 Small Cap ETF (NYSE:SLY) which significantly outperformed the S&P 500 in June. In fact, the majority of small-cap stocks have experienced notable growth this month.

Interestingly, the IFA U.S. Small Company index has delivered an impressive annual return of +11.1% since 1928, outperforming the +9.9% annualized gain of the