Small-Cap Underperformance Spurs Members to Stay Steady


The special question in October’s Asset Allocation Survey asked AAII members what, if any, changes they made to their small-cap stock allocations given the relative underperformance of small-cap equities this year. Nearly half of all respondents (47%) said they have not made any changes. Some of these AAII members said they don’t own small-cap stocks, while others said they have been maintaining their current allocations. Slightly more than a quarter of all respondents (26%) said they sold all or part of their small-cap holdings. About 21% of respondents said they have either increased their small-cap stock allocations or plan to do so.

Here is a sampling of the responses:

  • “None. I generally do not do small-cap.”
  • “None. I’m keeping my asset allocation the same.”
  • “No changes. I will be likely to buy even more if they continue to drop and the prices become attractive.”
  • “I purchased more positions during the mini-correction of October.”
  • “Earlier in the year, I lightened up on small caps.”

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