Small And Large Company Stock Performance In Different Economic Expansion Cycles
US small and large company stocks are important in portfolio construction. Traditionally, small cap (company) stocks have out performed large cap stocks in the long term. However, these two categories of stocks can diverse dramatically for several years. Their divergence usually signals various economic expansion cycles.
Long term small cap stock performance
We compare Vanguard small cap index fund (NAESX) with Vanguard large cap S&P 500 index fund (VFINX):
Small vs. Large stocks (as of 3/21/2016):
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