Small caps have experienced their first significant week in three years, with one expert predicting continued growth. The group's performance is expected to attract investors back into the category as interest rates decline. The Core S&P Small-Cap ETF, which tracks small-cap stocks, reached a new record high this week, marking its best monthly performance since December 2022. Additionally, the ETF is up nearly 11% in November and 35% over the last 52 weeks.
Analysts anticipate that investors will rotate out of money market accounts as a result of the Federal Reserve's interest rate easing policy
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