Small caps and Micro caps

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
golfallday
Posts: 118
Joined: Sat Feb 14, 2009 3:43 am
Location: College Point, NY

Small caps and Micro caps

Post by golfallday »

Any thoughts why they are doing well so far this year? IWM is +6.2% YTD; IWC is +7.9% YTD. VTI is +2.2% YTD.
Jags4186
Posts: 5502
Joined: Wed Jun 18, 2014 7:12 pm

Re: Small caps and Micro caps

Post by Jags4186 »

US small caps have outperformed US large caps 29/44 prior years.
US micro caps have outperformed US large caps 25/44 prior years.

Seems to me it’s business as usual.
wolf359
Posts: 2279
Joined: Sun Mar 15, 2015 8:47 am

Re: Small caps and Micro caps

Post by wolf359 »

Small cap value tilt is finally paying off. Their performance in the last few years was not so great.

The why doesn't matter so much. Different parts of the portfolio outperform or underperform at different times. If I accept that I can't predict the when, then I diversify and buy a little of everything.

This is also why Total Stock Market is better than S&P 500 Index. Most of the time, the performance will be very similar. At times like this, the little bit contributed to TSM by the small caps will boost it.
MotoTrojan
Posts: 10787
Joined: Wed Feb 01, 2017 8:39 pm

Re: Small caps and Micro caps

Post by MotoTrojan »

wolf359 wrote: Thu May 17, 2018 2:16 pm Small cap value tilt is finally paying off. Their performance in the last few years was not so great.

The why doesn't matter so much. Different parts of the portfolio outperform or underperform at different times. If I accept that I can't predict the when, then I diversify and buy a little of everything.

This is also why Total Stock Market is better than S&P 500 Index. Most of the time, the performance will be very similar. At times like this, the little bit contributed to TSM by the small caps will boost it.
Didn't SCV (or SC in general) explode after Trump's election? I guess I haven't compared 3 or 5 year returns but I didn't think it was far off from TSM.

I hold 20% of portfolio (26% of domestic stock) in S&P600 SCV so I am happy to have at-least one fund hitting all-time highs.
MotoTrojan
Posts: 10787
Joined: Wed Feb 01, 2017 8:39 pm

Re: Small caps and Micro caps

Post by MotoTrojan »

golfallday wrote: Thu May 17, 2018 1:55 pm Any thoughts why they are doing well so far this year? IWM is +6.2% YTD; IWC is +7.9% YTD. VTI is +2.2% YTD.
Smaller companies are less impacted by trade-wars and global conflicts in general is my guess.
User avatar
Nate79
Posts: 6901
Joined: Thu Aug 11, 2016 6:24 pm
Location: Delaware

Re: Small caps and Micro caps

Post by Nate79 »

If you look at the performance of VTI vs IWC and VBR (small cap value) VTI outperformed the first few months of the year then IWC the month of April. If you look at the 1, 3, 5, 10 year performance difference between these funds is pretty small. If you go back and look at 2006-current performance IWC has significantly underperformed VTI.

I don't really see any value in using these funds and there doesn't seem to be much of a small company premium in the last 10 years that I can see.
User avatar
midareff
Posts: 7416
Joined: Mon Nov 29, 2010 10:43 am
Location: Biscayne Bay, South Florida

Re: Small caps and Micro caps

Post by midareff »

Trying to beat the Total Market?
Post Reply