Small-cap stocks, typically valued between $250 million and $2 billion, are regaining popularity among investors after years of underperformance. Economic growth plays a significant role in this resurgence, as smaller firms tend to benefit more from increased consumer and business spending. 

Additionally, the Federal Reserve's recent rate cuts are expected to lower borrowing costs, a crucial factor for small businesses that rely heavily on credit. Another driver of renewed interest is valuation—many analysts believe small caps are undervalued compared to their larger counterparts. 

For investors seeking exposure while mitigating risk, small-cap ETFs like Vanguard Small-Cap Growth ETF (VBK), iShares Morningstar Small-Cap Growth ETF (ISCG), and Invesco S&P SmallCap Momentum ETF (XSMO) offer diversification and professional management. 

Finsum: With economic growth in recent quarters, small caps may continue to gain traction in the coming years.