Small-cap stocks have had a strong start in 2023, with the Russell 2000 index rising 5.31% in January, benefiting ETFs like the Vanguard Russell 2000 ETF (NASDAQ: VTWO). Wall Street is optimistic that smaller stocks will continue to perform well due to anticipated economic growth, declining interest rates, and stronger earnings compared to large-cap stocks. While the Vanguard ETF is a decent option, there are potentially better alternatives from the same issuer.
