The Small-Cap Premium Still Lives on the Value Side

Historically, small-cap stocks have outperformed large-cap stocks. This difference is referred to in investment circles as the small-cap (aka small-company) premium. The discovery of the small-cap premium is credited to Rolf Banz’s 1981 Journal of Financial Economics study, “The Relationship Between Return and Market Value of Common Stocks.” I specifically bring Banz’s study up because…

 

March AAII Journal Update

The March 2017 AAII Journal is Now Available Online.   Feature Article: The Top Mutual Funds Over Five Years: Health Care’s Dominance Is Weakening Four of the 10-best performing funds are from the health care category, but this number is down from seven last year. In This Issue: Mutual Funds » Tracking the S&P 500…