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Questions tagged [small-cap-stocks]

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Slice and Dice vs Total market ETFs. How should I proceed from here

Currently, I have about $330k invested in ETFs. When I started investing I knew about lazy portfolios constructed using total market index funds like 3 fund or 4 fund portfolios. For whatever reason, ...
Aditya's user avatar
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2 votes
0 answers
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Can foreign investors buy small cap stocks listed in China?

Foreign investors can invest in Chinese large cap and mid cap stocks via the Shanghai - Hong Kong Stock Connect and the Shenzhen - Hong Kong Stock Connect. According to the Hong Kong Stock Exchange's ...
Flux's user avatar
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As a person managing a small investment portfolio, does it make sense to focus most of my research on small cap / micro cap stocks?

I Found a compelling argument that people managing smaller portfolios should focus their research on smaller cap companies < 5 billion, even < 1 billion market caps. They usually only have 1 arm ...
Eric Gumba's user avatar
2 votes
1 answer
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How can small cap index funds grow in value if the ones that grow are turned over?

Is it a good idea to invest in a small cap index fund / ETF? I don't understand how the fund can possibly grow due to the constraints of its definition. Definition: A small cap is generally a company ...
JoJo's user avatar
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1 vote
3 answers
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Why do investors routinely avoid small cap stocks when they are the easiest to analyze?

Investors seem to routinely avoid penny stocks and small cap stocks, concentrating their investment in index funds and "blue chips". They seem to think that small stocks are risky. Penny ...
Flux's user avatar
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2 votes
1 answer
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Diversify your ETF portfolio from your job in the financial industry

I currently have 50% ZAG.TO, 35% XAW.TO, 15% VCN.TO. My current compensation at work is highly correlated to the performance of the financial industry in Canada (i.e. the top 5 banks). XAW holds 10% ...
Ryan J. Shrott's user avatar
3 votes
1 answer
110 views

Does it make sense for UK private investors to invest in "micro cap" funds/trusts, or are there better ways to access this sector (e.g VCTs)?

"Micro cap" trusts/funds seem to be an interesting corner of the UK investment universe (I'm thinking of MINI, RMMC, Downing's fund and new trust; perhaps WPCT too), at least for those with the ...
timday's user avatar
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5 votes
3 answers
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Is investing exlusively in a small-cap index fund a wise investment?

I'm 26 live in the UK and do not own a home. I have a regular income of which I save about 33% off after tax and I've good job security. I'm single with no children. I've 60% of my savings in a P2P ...
Declan McKenna's user avatar
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2 answers
897 views

How do I calculate what percentage of my portfolio is large-, mid- or small- cap?

I live in India, I've invested in some equity mutual funds (that invest in the domestic market). Each of them has some money in mid-cap stocks and some in large-cap. In fact, one of my funds was ...
Kartick Vaddadi's user avatar
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1 answer
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Argument against small-cap investment

I just finished John Bogle's The Little Book of Common Sense Investing, and I think I am convinced that investing in index funds is a great idea. I thought that choosing an index fund would be simple, ...
Lost's user avatar
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Is it smart to only invest in mid- and small-cap stock equity funds in my 401(k)?

Historically, mid-cap and small-cap company stocks have outperformed the market. Correct? Since I'm not going to touch the money in my 401(k) in over 40 years, wouldn't it make sense to invest ...
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8 votes
1 answer
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How do small cap stocks perform vs. large cap stocks (like Dow constituents) during bear trends?

Does anyone have any good information on how small cap stocks, e.g. < $500M, perform during bear trends and/or recessions in comparison to large cap stocks like the Dow Jones Industrial Average ...
John Humphreys's user avatar
3 votes
1 answer
2k views

Why do PE ratios for small cap stocks tend to be greater than those for large cap stocks?

As a general rule, why is the PE ratio of small cap stocks greater than the PE ratio of large cap stocks? Is it just a coincidence? Or is there a reason?
Victor123's user avatar
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