Federal Reserve rate cut may boost small and mid-cap stocks via Vanguard ETFs VO and VB.

A potential rate cut by the Federal Reserve could boost small and mid-cap stocks. Two Vanguard ETFs, the Vanguard Mid-Cap Index Fund ETF Shares (VO) and the Vanguard Small-Cap Index Fund ETF Shares (VB), offer broad exposure to these market segments at low costs. These ETFs may see strong growth in a falling interest rate environment, as small and mid-cap stocks tend to thrive when borrowing costs drop.

July 21, 2024
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