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rila3400
Contributor ○

The Most Popular Small-Cap Index Isn’t the Best

 

"Not all small-cap indexes are created equal.
The popular Russell 2000 Index has consistently lagged other broad market-cap-weighted small-cap indexes.
It isn’t a bad starting point, but there are better alternatives."

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3 Replies
Exactduke
Explorer ○

Re: The Most Popular Small-Cap Index Isn’t the Best

I've always heard that small caps was one of the categories where a managed fund could outperform the index.  I do have Fido's small cap value fund.  But for the most part, I just go ahead & use an extended market index (for small & mid caps).    

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FatKat
Participant ○○○

Re: The Most Popular Small-Cap Index Isn’t the Best


@rila3400 wrote:

 

"Not all small-cap indexes are created equal.
The popular Russell 2000 Index has consistently lagged other broad market-cap-weighted small-cap indexes.
It isn’t a bad starting point, but there are better alternatives."

Link


I have held IJR for the past several years and like it.

0 Kudos
rila3400
Contributor ○

Re: The Most Popular Small-Cap Index Isn’t the Best


@FatKat wrote:

@rila3400 wrote:

 

"Not all small-cap indexes are created equal.
The popular Russell 2000 Index has consistently lagged other broad market-cap-weighted small-cap indexes.
It isn’t a bad starting point, but there are better alternatives."

Link


I have held IJR for the past several years and like it.


I have owned VTMSX since 2012.
This is an actively managed fund which attempts to minimize taxes
while tracking the S&P 600 index (IJR uses same index).
I've been pleased with the fund's performance.

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