Small cap stocks are largely immune from tariff worries and tend to be bigger beneficiaries of tax cuts than large multi-national companies.

These tailwinds are not priced into the market, according to Nick Kalivas, senior equity ETF strategist at Invesco ETFs.

The Russell 2000, which tracks small cap stocks is up 8.5% so far this year, compared to 2.8% for the S&P 500.