Pennx Royce fund . 8.66 over last 15 years Vb small cap index etf 9.80 over 15 years Trails index by guess what His .96 expense ratio He beats his active on peers, but as is always loses to the index, because of basically a onepercent expense ratio versus .03
Large cap becomes overpriced money will flow to small cap, vice versa. 70's plastic was invented. 2000 Internet was invented. 2020's ? AI was invented? Not so fast, not yet practical except electronics become smaller. If you can find excellent companies in small cap space, of course you would make money, "better returns with higher volitivity" - his words. Remember many small companies don't exist long term, they fail and vanish. If you happen to hold a company that survives long term ( decades), it could be Google, Amazon, Apple, Nvidia today ( not in small cap category any more )
Small caps are not an asset class, they are a style weighting. If you hold a total market fund, it includes small caps. Therefore, it is included in the market and not an alternate asset class.
The small cap impact in a total market index is so small it's practically nonexistent. Total market funds are dominated by mega cap big tech names, which nearly nullifies any small cap impact in those funds. This is why you must own separate small and mid cap indexes if diversification is your goal.
n the past 10 years, the second 5 years did not make the small cap stocks do better than the index than the first 5 years. Also, compare with index such as QQQ or VOO, not the small cap index alone.
I just took a large Russell 2000 position a couple weeks ago. I'm counting on small caps rebounding over the next couple years
Same here!! Took huge position in TNA
Russell 2000 is a bad index. Use dimensional funds
Pennx Royce fund . 8.66 over last 15 years
Vb small cap index etf 9.80 over 15 years
Trails index by guess what
His .96 expense ratio
He beats his active on peers, but as is always loses to the index, because of basically a onepercent expense ratio versus .03
No look at dimensional fund advisors
Holy moly I just checked his Royce Pennsylvania Mutual fund. 5 year return is around 6 percent. Sp500 is around 90 !!
A balance approach is always the best.
Legend Royce funds what great insight
Great Interview, very insightful as always! Chuck Royce is a legend and always a pleasure to hear from.
Thanks for the info.
Great episode, thanks!!
What does he mean by leverage?
I think loans
He’s right on rates at 6-7 % the good companies will thrive the junk will die
Can you turn on youtube clips feature please. Would benefit show by allowing us to share your show on social media
❤❤❤forever
Small cap stocks have under performed… it's amazing how artificial intelligence can quickly filter out the BS on performance claims.
False
Large cap becomes overpriced money will flow to small cap, vice versa. 70's plastic was invented. 2000 Internet was invented. 2020's ? AI was invented? Not so fast, not yet practical except electronics become smaller.
If you can find excellent companies in small cap space, of course you would make money, "better returns with higher volitivity" - his words. Remember many small companies don't exist long term, they fail and vanish. If you happen to hold a company that survives long term ( decades), it could be Google, Amazon, Apple, Nvidia today ( not in small cap category any more )
he said "that is the $64 question", shouldn't it be "$64,000" question ??
Yes
Small caps are not an asset class, they are a style weighting. If you hold a total market fund, it includes small caps. Therefore, it is included in the market and not an alternate asset class.
if youre a boglehead factor investing is real and is supported by the data, buy small caps
@@apothe6
Can also buy all market index funds with more equal weighting and more sml cap. Russell 2000 better also good for this.
Some all SP or world index funds more equal weighted to sml caps vs large cap dominated.
@@jmc8076 grammatical fail. Try again.
The small cap impact in a total market index is so small it's practically nonexistent. Total market funds are dominated by mega cap big tech names, which nearly nullifies any small cap impact in those funds. This is why you must own separate small and mid cap indexes if diversification is your goal.
n the past 10 years, the second 5 years did not make the small cap stocks do better than the index than the first 5 years. Also, compare with index such as QQQ or VOO, not the small cap index alone.