Buy 2 Index Funds to Beat the S&P 500 in the Next 5 Years, According to Wall Street Analysts

State Street Advisors said the S&P Small Cap 600 and MSCI Emerging Markets indexes are expected to outperform the S&P 500 over the next three to five years. The call implies relatively better medium-term prospects for U.S. small caps and emerging markets versus large-cap U.S. equities. The piece is forward-looking commentary rather than a near-term catalyst, so direct market impact is limited.

Analysis

State Street Advisors said the S&P Small Cap 600 and MSCI Emerging Markets indexes are expected to outperform the S&P 500 over the next three to five years. The call implies relatively better medium-term prospects for U.S. small caps and emerging markets versus large-cap U.S. equities. The piece is forward-looking commentary rather than a near-term catalyst, so direct market impact is limited.