PRFZ - PRFZ: Top Performing Small-Cap Fund

2024-01-30 16:04:33 ET

Summary

• The Invesco FTSE RAFI US 1500 Small-Mid ETF uses Research Affiliates' Fundamental Index to weight its index and has delivered better returns than passive market-capitalization based ETFs.
• It has also beaten the well-respected actively managed Royce Value Trust that is my current small-cap investment pick.
• I believe small-cap companies may see a catch-up in performance in 2024 as there is currently a large valuation gap to mega-caps.

One of my biggest investment themes for 2024 is that if the U.S. economy were to achieve a 'soft landing', then small-cap companies should see a catch-up in performance, since the valuation gap between the mega-caps and the rest of the market is getting extreme....

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