According to theory smaller companies should have higher returns on the long term compared to bigger ones.
This is beast seen if we compare returns of VTSAX (total US market index fund with smaller companies included). VTSAX has higher returns to VFINX (SP500), which again has higher returns to DIA (Dow Jones ETF):
https://live.staticflickr.com/65535/535 ... 4ab_b.jpg
I wonder why situation is not the same in regards to NASDAQ indices where NASDAQ 100 (which does not include smaller companies) has incomparably higher returns compared to NASDAQ COMPOSITE:
https://live.staticflickr.com/65535/535 ... d0d_b.jpg
This is beast seen if we compare returns of VTSAX (total US market index fund with smaller companies included). VTSAX has higher returns to VFINX (SP500), which again has higher returns to DIA (Dow Jones ETF):
https://live.staticflickr.com/65535/535 ... 4ab_b.jpg
I wonder why situation is not the same in regards to NASDAQ indices where NASDAQ 100 (which does not include smaller companies) has incomparably higher returns compared to NASDAQ COMPOSITE:
https://live.staticflickr.com/65535/535 ... d0d_b.jpg
Statistics: Posted by matthewmatt — Thu Feb 22, 2024 1:33 pm — Replies 0 — Views 28