“We believe after three years the performance potential of small-cap stocks may outweigh their volatility,” Deutsche said in a white paper. “Therefore, in our opinion, investors with time horizons of greater than three years may wish to consider allocating a portion of their equity portfolios to small-cap stocks.”
iShares Russell 2000 ETF
For more information on small capitalization stocks, visit our small-cap category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own shares of IWM.