Questions tagged [small-cap-stocks]
14 questions
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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 constituents?
I'm interested in knowing if these…
John Humphreys
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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 lending provider which allows me to sell my loans…
Declan McKenna
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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 stomach for the risks.
To what extent is an ordinary UK…
timday
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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, but on the Vanguard website itself, I was really…
Lost
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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
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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% non-Canadian banks and VCN is 25.5% Canadian…
Ryan J. Shrott
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Diversification with in similar funds pros and cons
I have some mutual funds some large/mid/small/flexi/momentum..
and i will continue same sips monthly.
if we do monthly 10,000 into one small cap or
10,000 into two different small caps 5000 each
Example: 1. Bandhan 2. Nippon
what would be the…
Developer
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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 Stock Connect FAQ:
For the Shanghai Stock…
Flux
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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 with a market capitalization of between $300…
JoJo
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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 exclusively in these types of funds now, and only worry…
user19035
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2 answers
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 of business. Which makes it much easier to…
Eric Gumba
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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 stock investors are sometimes called "penny stock gamblers". I…
Flux
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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 primarily mid-cap when I started investing, but now…
Kartick Vaddadi
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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, I decided to construct my portfolio in a…
Aditya
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