Opportunities for Savvy Investors Despite Market Highs - Small-Caps, REITs, Equal-Weight Indexes
• Small-cap stocks are at a historic valuation low compared to large caps, making funds like Vanguard Russell 2000 ETF (VTWO) attractive
• Real estate investment trusts (REITs) have underperformed due to rising rates, but could rebound if rates start falling as expected, making Vanguard Real Estate ETF (VNQ) appealing
• The "Magnificent Seven" mega cap stocks have driven much of the market's gains recently, meaning the other 493 S&P 500 stocks have lagged, so the equal-weight S&P 500 ETF (RSP) could be a good buy
• Even with the market at all-time highs, patient long-term investors still have opportunities in specific areas like small-caps, REITs, and equal-weight indexes
• The writer highlights VTWO, VNQ, and RSP as three "excellent choices" for investors to consider right now