Small stocks is different from Small Value stocksDr. William Sharpe wrote that there's not enough data, even over the long historic period, to reject the null hypothesis that the performance of small stocks in a small corner of the market is anything more than an artifact. I guess it depend on which authority you believe.Leveraging the S&P has costs and adds no diversification.
While some may argue if the small factor is weak, dormant, or disguised beta, going into Small Value allows you to get higher Value loadings where the diversification benefits and premiums are larger and more robust
Statistics: Posted by Nathan Drake — Mon Dec 18, 2023 12:09 am — Replies 37 — Views 2933