Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
 Best Of Politics | Best Of | Favourites & Replies | All Boards | Post of the Week!
Search Politics
Shrewd'm.com Merry shrewd investors
Best Of Politics | Best Of | Favourites & Replies | All Boards | Post of the Week!
Search Politics

Halls of Shrewd'm / US Policy❤
Unthreaded | Threaded | Whole Thread (2) |
Post New
Author: knighttof3   😊 😞
Number: of 48448 
Subject: Small/medium cap ETF disadvantage
Date: 12/17/2024 9:54 AM
Post Reply | Report Post | Recommend It!
No. of Recommendations: 3
I hesitate to invest in small/medium cap index based funds for the following reason.

All successful small or medium cap companies will eventually leave their cap indices and be dropped from the index mutual funds or ETFs, leaving more and more losers in the indices. A bad "survivorship" bias.

Would like to know if/why this is wrong.
Print the post


Author: BenSolar ✧  😊 😞
Number: of 48448 
Subject: Re: Small/medium cap ETF disadvantage
Date: 12/26/2024 3:27 PM
Post Reply | Report Post | Recommend It!
No. of Recommendations: 2
Yes, there is a tendency for successful small-caps to outgrow the category, but there are also always new small cap stocks being added to the indexes, as they've grown up from micro-caps, or IPOed. These will be some of the most dynamic and fast growing companies on the planet.
Print the post


Post New
Unthreaded | Threaded | Whole Thread (2) |


Announcements
US Policy FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Ticker or Board Name Author

Best Of Politics | Best Of | Favourites & Replies | All Boards | Followed Shrewds