FTSE Russell 

Blog | What have you done with my small cap premium?

Academic research has demonstrated the existence of what is known as the “size” or “small-cap” premium beginning over 30 years ago. Today many investors take it as given that small stocks will outperform large stocks based on this foundational principle of finance. It is a rational expectation, since small stocks are demonstrably more risky than larger stocks, so they should provide investors with additional compensation for bearing this risk in the form of extra return.

With over four decades of return history for the Russell US Indexes we can produce a long-term analysis of the relative performance of large and small US companies using the Russell 1000 large cap index and the Russell 2000 small cap index. Over the last 40 years, large stocks have actually edged out small stocks by a slight margin through the end of 2018.

Read the full blog post at the link beneath Related Files / Links

Head Office
10 Paternoster Square
London
EC4M 7LS
United Kingdom
Company website:
https://ftserussell.com

What’s new

  • Considering new responses to issues around environment, development and globalisation.

    Blog | Interdependence Day - Considering new responses to issues around environment, development and globalisation.

    White papersMon, 9 Sep 2019

    In recent scientific research, it is suggested that the Anthropocene era – the first era in which human activity has been the dominant factor in shaping the environment on Earth – has initiated the sixth species mass extinction. Unsurprisingly, climate change is cited as the “biggest single threat to the economy” by many, including Henry Paulson, the former chairman of the Federal Reserve. 

  • BLOG: Climate change strategies: Beware obsolescence

    Blog | Climate change strategies: Beware obsolescence

    White papersFri, 6 Sep 2019

    Climate change is now central to politics and public discourse. But a surprising number of investors continue to take a business-as-usual approach to investing, presenting a blind spot that can put portfolios at risk. Those who are looking at the issue often find the debate framed around the risks of exposure to carbon-intensive industries, while the downside of missing out on the green success stories of the future are less discussed.

  • The future of index data: Having it your way

    Blog | The future of index data: Having it your way

    White papersFri, 23 Aug 2019

    I believe the famous Burger King ad slogan, “Have it Your Way,” is very well understood across all consumer cultures because it so precisely expresses the experience all customers—regardless of the industry—desire. This standard for client experience has even crept into areas in market data once considered so complex that providers were limited in their ability to customise products and services to clients’ needs. First, consider how market data can be packaged.

  • managing market volatility

    Managing Market Volatility

    White papersFri, 23 Aug 2019

    Interested in understanding the state of volatility in the current market? This comprehensive package from Clear Path Analysis and FTSE Russell covers all the important focal points with top industry thought leaders including two robust roundtable debates, a white paper and an interview

  • a focus on funded status volatility of corporate db plans

    A focus on funded status volatility of corporate DB plans

    White papersFri, 23 Aug 2019

    Year after year, corporate DB plan sponsor surveys show controlling funded status volatility (surplus risk) as the top priority for their organizations. When liabilities grow faster than plan assets, additional cash contributions are required. At the same time, pension assets and liabilities have become prominent parts of company financial statements that investors use to evaluate company health.

Search all our content