Some small-cap growth etfs are reportedly outperforming larger indexes and funds, including the "magnificent seven", in 2026. Certain outlets are suggesting that investing in these small-cap etfs could be a beneficial move, potentially setting investors up for long-term success. The performance of small-cap etfs compared to larger indexes, such as the s&p 500, is a topic of discussion among financial outlets, with some predicting continued strong performance from small-cap etfs in the second half of 2026.