June 8, 2019
Here is the article.
The standard pension fund's equity portfolio consists mostly of the stocks of the largest U.S. companies. Each of today's giants such as Apple, Google, General Electric and Procter & Gamble was once a small company going through rapid growth that paid off in a big way for early investors.
Because small companies can grow much faster than large ones, including small-cap stocks is an excellent way to enhance long-term returns. The "ultimate" portfolio we're building includes a 12% slice of small-cap stocks, representing the smallest 10% of U.S. companies.
This four-slice pie, from 1970 through 2013, would have produced an annualized return of 8.9%, with a standard deviation of 10.8%.
Actionable Items
I need to look into small cap index fund and compare to S&P index ETF performance last 10 years.
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