Could Index Investing Miss the Best Stock Bets?

While the comeback of small caps might be a contributor, the article notes that size might not be the only factor. The same trend, it notes, was found in what it describes as another group of “index dropouts” that fall into the large-cap category. Deluard’s analysis shows that large-cap stocks excluded by the Standard & Poor’s committee have “actually outperformed the index since January 2016.”

The article concludes, “It might be time to give dropouts another chance.”

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