The Cboe Volatility Index (VIX) spiking in early April may have caused investors to scurry from small-caps. However, there are still value-oriented opportunities to find in the market. And one fund from Neuberger Berman does all the heavy lifting for investors/advisors.
While advisors can preach the growth benefits of small-caps equities, it’s difficult for investors to stay the course when markets are moving as wildly as they have been as of late. Still, there are opportunities to exploit if individual investors and advisors have the time to research the vast small-caps arena.
“In this environment, identifying small-cap stocks that are perceived as undervalued and exhibit insider buying can provide unique opportunities for investors seeking to capitalize on potential growth within a dynamic market landscape,” Yahoo Finance noted.
Again, investors and advisors will have to conduct the necessary due diligence in order to locate value. But there’s an easier way. Consider an actively managed fund that traverses the small-caps universe locating stocks brimming with value and quality while maintaining a growth profile.
Sidestep Pitfalls With This Small-Caps/Midcaps ETF
A market full of uncertainty certainly has its fair share of pitfalls. That’s even more so when it comes to small-caps equities. So to sidestep these pitfalls, consider active management, or more specifically, the Neuberger Berman Small-Mid Cap ETF (NBSM ).
Active management allows investors to stay fluid in constantly changing markets dominated by tariff news, interest rates, and geopolitical tensions. Portfolio managers can deftly adjust holdings to suit the market environment whether it’s to protect the downside or capture upside.
NBSM taps into the talent of seasoned investment professionals with over 20 years of market experience and a successful track record. This is essential when navigating the small-caps to midcaps arena that carries its own set of unique market characteristics.
In volatile times like now, it’s also essential to focus on quality. This is exactly what NBSM does, scouring for small-caps and midcaps stocks that exhibit strong fundamentals: consistent free cash flow generation, above-average profitability, conservative balance sheets, and differentiated business models with durable barriers to entry.
To balance out small-caps exposure, the fund also invests in midcap equities. Midcap equities can provide the benefits of both small-caps and large-caps stocks, exhibiting growth characteristics that cater to the former and stability inherent in the latter.
Click here for more fund information on NBSM.
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