Dividend logo

One of the major axioms of the investing world is that over long periods, small beats large.

Thanks to the research of economists Fama and French, small-cap stocks have shown their muscle and have managed to outperform large-cap equities during their study periods. The idea is that their growing revenues are potentially valued more by investors than their slower-moving, larger sisters.

And because of that, small-cap indexes and funds like the iShares Russell 2000 ETF (IWM) have gone on to crush large-cap stocks.

That is, until the recession. Since then, small-caps have functioned in a weird bizarro world where their outperformance was not guaranteed. And in fact, after an initial rebound from the depths of the recession, small-caps fell by the wayside.

But with Trump promising growth, small-caps have once again begun to move in a passive direction. The question is whether or not this is a false start in the current trend of underperformance, or if it is truly a return to small-caps’ former glory days.

Find all the small-cap ETFs available here.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Favorable%20demand%20supply%20conditions%20helps%20packaging%20company%20maintain%20position%20on%20best%20dividend%20stocks%20list
News

Favorable Demand Supply Conditions Help Packaging Company Maintain Position on Best Dividend Stocks List

At this point, you can’t escape the trade war news. The skirmish between the U.S. and China has...

News

Hershey Co, Discover Financial Services and Expedia Group Increase Dividend

Each week, stocks, funds and REITs announce upcoming dividend payouts. Track how your portfolio’s...

News

Johnson & Johnson, S&P Global and Equinix Go Ex-dividend This Week

There are many securities going ex-dividend this week starting Monday, August 19. For income...