- Small caps have lagged the S&P 500 in the last two years, but historically outperform it.
- Stock pickers could find a gem in the small cap world but risks are also big.
- Small caps are more related to the US economy than large caps.
What Are Small Caps?
Small caps are stocks with a relatively small market capitalization, usually between $300 million and $2 billion. One of the multitude of reasons behind investing in small caps is their growth potential, as it is generally considered that smaller companies have more growth opportunities due to untapped markets. More →