Small-cap stocks, often sensitive to interest rate changes, are showing signs of a potential rebound after the Federal Reserve’s recent rate cuts. With borrowing costs declining and a historically strong period for small-cap performance approaching, the IWM ETF, tracking 2,000 small-cap U.S. stocks, has outperformed the broader market in recent weeks. This article explores the reasons behind this upward trend and outlines two popular investment options for capitalizing on the potential growth of small-cap stocks.