Related: Kevin O’Leary: 224 Small Caps for Next 18-36 Months

The small-cap category has also been outperforming on encouraging domestic economic fundamentals as the U.S. experiences strong employment numbers, rising consumer spending and strong consumer confidence. The smaller companies are better positioned to capitalize on the domestic growth.

Furthermore, small-caps are insulated from international headwinds, especially in an environment gripped by fears of potential trade wars, tariff concerns, rising geopolitical risks and a strengthening U.S. dollar.

For more information on the small-cap segment, visit our small-cap category.