Small Companies Gain Ground as Investors Look Beyond Big Tech

Published 2026-11-06

Investors are turning their attention away from the largest technology companies and toward smaller businesses. According to a report from Investing.com Canada, the iShares Core S&P Small-Cap ETF, which trades on the New York Stock Exchange under the symbol IJR, had risen 20% since the start of the year through November 4. This result was well ahead of the 13.3% gain recorded by a major SPDR fund over the same period.

Small-cap stocks are shares of companies with a relatively small market value. Over the past months, many investors had focused on a small group of very large technology firms, which drove much of the growth in major stock indexes. The strong performance of the small-cap fund shows that interest is now spreading to a wider range of companies. For Canadian investors, this shift may be relevant because many people hold U.S. funds in their retirement and savings accounts.

The report did not explain all the reasons for the change, but market analysts often point to factors such as expectations about interest rates and the economy. Smaller companies usually borrow more money than large firms, so they can be sensitive to changes in borrowing costs. When rates are expected to fall, these businesses may benefit more quickly.

Whether this trend will continue remains uncertain. Stock prices can change quickly, and past performance does not guarantee future results. Financial experts generally recommend that individuals consider their own goals and risk tolerance before making investment decisions.

Sources: Investing.com Canada

More Canada news

All Canada news · News by country