[Kyle]

Sorry if this horse has been beaten, but any resources for the argument that Small Cap Value is superior to Small Cap Growth index funds?

I’m currently exploring investment strategies and am particularly interested in the performance of Small Cap Value versus Small Cap Growth.

I’ve come across various opinions, but I’m looking for solid resources or arguments that suggest Small Cap Value might be superior to Small Cap Growth.

Can anyone share studies, articles, or personal insights that support the idea that Small Cap Value offers better long-term returns or lower risk compared to Small Cap Growth?

Any historical performance data or expert analysis would be greatly appreciated. Thank you!

[Zach]

I’ve just bought all the small caps through IWM From a macroeconomics perspective small caps benefit most in a rate cutting environment and from a technical perspective the small caps have been trading in a range and gone no where for years.

I didn’t try to predict which small cap sector would outperform.

I just bought the whole index.

Now the small caps are breaking out and running.

Statistically speaking decent chance of the Russell catching up to SPX and NDQ and making new all time highs.

That said it’s already gone for a run.

Probably still has a bit to go but now that everyone is talking about it it’s getting late.

All last year I loaded up on IWM (got made fun of on here for it). I have a cost basis of 192/share.

Now I’m letting my small cap investment run and am back to buying VTI and QQQ as those indexes base and pull back.

[Jason]

Paul Merriman – check him out. He’s a huge small cap value tilt guy. Tons of academic papers on it.

[Luke]

Historically, Small Cap Growth is the worst performing section of the market.

[Dan]

Small cap growth has been found to be one of the worst performing segments of the market.

Google “The small cap growth anomaly”

[KC Kline]

Small growth is probably the tilt that factor investors pursue the least.

In the long run it lags the other style boxes with higher standard deviation (risk).

Jim Dahle at the White Coat investor has called small growth the casino factor.

In the case for small value, you have to zoom out decades to see outperformance.

What does the future hold? Who knows.

If you commit to SCV though, you should plan to ride it for the long run (25+ years).

Personally, I have a significant SCV tilt.

I could be wrong but think the asset class is a coiled spring.

We got a taste the past month, but if a series of rate cuts are on the horizon, SCV will do well.

[Golden]

What can’t you go with Small cap blend like VB. That’s what I hold with VTI, MGK, VGT.

[Mark]

Is value better than growth maybe. Is growth better than value. Maybe. U will get tons of opinions on why one is better thwn the other.

This is why most ppl go with a blend and call it a day

[Andy]

I believe it Jeremy Siegel (economist and professor of finance at Wharton School at UPenn) has written in Stocks for the Long Run there was a period of outperformance in the 80s

[Author]

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