Is It Time to Bet on Small Caps? Analysts Share Insights On The Valuation Gap Versus Large Caps

The relative value of small-cap stocks compared to that of large-cap stocks is trading at its lowest point in over two decades.

As the chart below shows, the price ratio between the iShares Russell 2000 ETF (NYSE:IWM) and the SPDR S&P 500 ETF Trust (NYSE:SPY) is at its lowest level since November 2001, and has decreased by more than a third in the last year and a half.