Is there a new size of small, mid and large caps???

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davidkw
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Is there a new size of small, mid and large caps???

Post by davidkw » Fri Dec 06, 2013 3:31 pm

Before the stock market boomed the past few years, I had the following as rough estimates for the market caps for stocks:

Small caps under two billion

Large caps over ten billion

Mid caps in between Small and Large caps

Micro caps under 300 million

Has those changed with the high of the market now?
David | | From Jack Brennan's "Straight Talk on Investing", page 23 "Living below your means is the ultimate financial strategy"

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SimpleGift
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Re: Is there a new size of small, mid and large caps???

Post by SimpleGift » Fri Dec 06, 2013 6:35 pm

According to Morningstar's "style box" methodology, they use a floating system that's designed to avoid being significantly affected by market movements:
Morningstar wrote:Rather than a fixed number of "large cap"or "small cap" stocks, Morningstar uses a flexible system that isn't adversely affected by overall movements in the market. Large-cap stocks are defined as the group that accounts for the top 70% of the capitalization of each geographic area; mid-cap stocks represent the next 20%; and small-cap stocks represent the balance.
Image
Source: Morningstar Glossary
Cordially, Todd

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Re: Is there a new size of small, mid and large caps???

Post by DVMResident » Fri Dec 06, 2013 7:43 pm

Simplegift wrote:According to Morningstar's "style box" methodology, they use a floating system that's designed to avoid being significantly affected by market movements:
Morningstar wrote:Rather than a fixed number of "large cap"or "small cap" stocks, Morningstar uses a flexible system that isn't adversely affected by overall movements in the market. Large-cap stocks are defined as the group that accounts for the top 70% of the capitalization of each geographic area; mid-cap stocks represent the next 20%; and small-cap stocks represent the balance.
Image
Source: Morningstar Glossary
Makes sense as it avoids the inflation issue, too.

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docneil88
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Re: Is there a new size of small, mid and large caps???

Post by docneil88 » Sat Dec 07, 2013 2:02 am

Simplegift wrote:According to Morningstar's "style box" methodology, they use a floating system that's designed to avoid being significantly affected by market movements:
Morningstar wrote:Rather than a fixed number of "large cap"or "small cap" stocks, Morningstar uses a flexible system that isn't adversely affected by overall movements in the market. Large-cap stocks are defined as the group that accounts for the top 70% of the capitalization of each geographic area; mid-cap stocks represent the next 20%; and small-cap stocks represent the balance.
Source: Morningstar Glossary
With that floating system, the number of companies in each category will not be significantly affected by market movements, but the dollar value of the breakpoints between the categories will be.

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JoMoney
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Re: Is there a new size of small, mid and large caps???

Post by JoMoney » Sat Dec 07, 2013 2:19 am

It looks like it, here's the "median market cap" reported in Vanguard's Small, Mid, and Large-Cap index funds over the past couple years (as reported in annual reports):

Code: Select all

12/31/2006  Small-Cap Median Market Cap 1.7B
12/31/2006  Mid-Cap Median Market Cap 6.6B
12/31/2006  Large-Cap Median Market Cap 47.0B

12/31/2007  Small-Cap Median Market Cap 1.7B
12/31/2007  Mid-Cap Median Market Cap 6.8B
12/31/2007  Large-Cap Median Market Cap 46.5B

12/31/2008  Small-Cap Median Market Cap 1.0B
12/31/2008  Mid-Cap Median Market Cap 3.7B
12/31/2008  Large-Cap Median Market Cap 35.3B

12/31/2009  Small-Cap Median Market Cap 1.3B
12/31/2009  Mid-Cap Median Market Cap 4.7B
12/31/2009  Large-Cap Median Market Cap 35.2B

12/31/2010  Small-Cap Median Market Cap 1.6B
12/31/2010  Mid-Cap Median Market Cap 6.2B
12/31/2010  Large-Cap Median Market Cap 39.7B

12/31/2011  Small-Cap Median Market Cap 1.6B
12/31/2011  Mid-Cap Median Market Cap 5.8B
12/31/2011  Large-Cap Median Market Cap 39.4B

12/31/2012  Small-Cap Median Market Cap 1.7B
12/31/2012  Mid-Cap Median Market Cap 6.7B
12/31/2012  Large-Cap Median Market Cap 46.0B

06/30/2013  Small-Cap Median Market Cap 2.6B
06/30/2013  Mid-Cap Median Market Cap 9.1B
06/30/2013  Large-Cap Median Market Cap 53.8B
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

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