A Tale of Two Small-Cap Indexes

A recent article in Barron’s compares the performance of two small-cap indexes: the Russell 2000, the most commonly-used benchmark, and the lesser-known S&P SmallCap 600 index. According to the article, over 90% of investment funds focus on the Russell 2000, but this index has underperformed its S&P peer for more than twenty years. “The difference isn’t trivial, either,” the article points out, adding that when reinvested dividends are taken into account, the difference amounts to… Read More