Small caps and Micro caps

[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]

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]

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]

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]

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.

[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.

[midareff]

Trying to beat the Total Market?