State Street: Small Caps & Emerging Markets Outperform S&P

State Street predicts that two index funds, Vanguard S&P Small-Cap six hundred ETF (VIOO) and iShares MSCI Emerging Markets ETF (EEM), could outperform the S&P five hundred in the next three to five years, with annual returns of 7.6% and 7.5% respectively. Despite past underperformance, small caps and emerging markets are expected to rebound due to cheaper prices and faster earnings growth. However, risks remain, including high interest rates and the dominance of U.S. large caps in the AI wave. Expense ratios are also a factor, with VIOO at 0.07% and EEM at 0.72%. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/27d4c699db573d0d