The Vanguard Russell 2000 ETF (VTWO), mimicking the Russell 2000 index, has gained 20.2% year-to-date in 2026 (as of Sept. 4), surpassing the S&P 500's 12.7% and Nasdaq-100's 17% returns. However, it could face a challenge during the U.S. Federal Reserve's policy meeting on September 15-16. Wall Street sees a 59% chance of an interest rate hike, which would significantly impact small-cap companies, as approximately 32% of Russell 2000 companies hold floating rate debt, compared to just 6% in the S&P 500.