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If you look beyond just the S&P 500, there are intriguing opportunities in small caps, value, and international stocks.

Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the Vanguard S&P Small-Cap 600 Index Fund ETF Shares (VIOO) is a passively managed exchange traded fund launched on September 9, 2010.

Small and mid-cap indices (S&P 400, S&P 600) remain undervalued relative to the S&P 500, trading at 15.7x and 15.2x forward PE versus 20.7x. Historically, the S&P 400 and S&P 600 delivered higher EPS growth (10.0%, 10.5%) than the S&P 500 (6.8%), yet suffered multiple contractions. Index composition shifts and rising market cap thresholds mean fewer high-growth, early-stage companies are included in the S&P 400/600.

U.S. equity markets advanced for a fifth straight week - their longest winning streak since 2024 - as strong earnings, resilient data, and hopes for lasting Iran peace fueled optimism. Investors looked through another oil-price surge and inflationary pressure, focusing instead on corporate resilience and economic strength despite a complex macro backdrop shaped by geopolitical and policy uncertainty. The Fed held…