For definitions of indexes in the chart, please visit our glossary.
In the next part of this series, we’ll touch on one of the reasons why these excess returns may be occurring in the small- and mid-cap parts of the market, and what the ETF industry may not yet know about smart beta approaches to indexing.
To learn more about smart beta, click here to read Luciano’s recent Journal of Indexes article, “Considering Smart Beta.”
2Market capitalization data as of 3/31/2014.
Important Risks Related to this Article
There are risks associated with investing, including possible loss of principal. Investments focusing on certain sectors and/or smaller companies increase their vulnerability to any single economic or regulatory development. This may result in greater share price volatility.
2014 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance, rankings and ratings are no guarantee of future results.