Author Topic: Small/Micro cap indexes.  (Read 1119 times)

flesh

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Small/Micro cap indexes.
« on: March 30, 2020, 02:51:54 PM »
What small cap etf's would you recommend to take advantage of the small caps getting pummeled wo picking a particular company? It seems to me a small/micro cap equal weighted index would be best?


thowed

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Re: Small/Micro cap indexes.
« Reply #1 on: March 30, 2020, 03:26:48 PM »
I don't know if this is too obvious but the S&P 600 is my small-cap go-to.  I can't remember the details but it's considered superior to Russell 2000 as it filters out some of the 'bad' companies.  Yet the 2000 is much better known.

no_free_lunch

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Re: Small/Micro cap indexes.
« Reply #2 on: April 01, 2020, 07:06:57 AM »
You could also look at mid-caps.   VO (vanguard mid-cap etf) has actually outperformed their small cap etf's since inception in 2004.  Arguably the mid-cap's are more likely to survive an extended downturn and are slightly better able to lobby for a bailout when they get into trouble.  Currently VO is down more than the S&P500 but less than most small cap indices.  I think it's about 40-45% upside to 52 week high.