My three questions:
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Why are Small Cap index funds doing so well? (I'm guessing small companies are quicker to respond to crisis and opportunity, and raising capital is almost free right now)
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More importantly, if I get into these small cap index funds right now, when should I get out and switch back to large cap?
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Would you buy into small cap etfs right now?
Here's the benchmark:
S&P 500 ETF ($SPDR)
- 3 months: 11%
- 1 year: 15%
- 5 years: 101%
Now compare that benchmark to 3 small cap S&P Index ETFs (note 3 month performance):
SPDR S&P 600 Small Cap ($SPSM):
- 3 months: 33%
- 1 year: 18%
- 5 years: 96%
iShare S&P Small Cap 600 Value ETF ($IJS):
- 3 months: 34%
- 1 year: 11%
- 5 years: 81%
Guggenheim S&P SmallCap 600 ($RZV):
- 3 months: 34%
- 1 year: 14%
- 5 years: 57%
Submitted January 22, 2021 at 11:31PM by r2002 https://ift.tt/365Kr2A
