DGS - Where In The World Have Small Caps Performed Best?
2024-03-13 18:55:00 ET
Summary
- Many are drawn to large-cap stocks, especially the technology giants that have dominated the market in recent years.
- For all the talk of the 'death' of the size factor, small caps have handily outperformed large caps in EM for the last decade.
- Emerging market small caps are an attractive asset class for investors seeking diversification, growth potential and income.
By Jeremy Schwartz, CFA
Many are drawn to large-cap stocks, especially the technology giants that have dominated the market in recent years. These mega-cap companies have shown impressive growth and resilience amid the pandemic and the economic downturn, while small caps have languished both in absolute and relative terms.
But there are some locations where small caps have done quite well, and they may surprise you. Small caps in emerging markets ((EM)) have shown strong performance and diversification benefits, as well as higher dividend yields and lower valuations than U.S. small caps....
Where In The World Have Small Caps Performed Best?