Small Cap Value


Portfolio Role

Small cap value stocks are perhaps the most popular index option for “tilting” a portfolio beyond simple market weighting.  Lots of research has shown that small and value stocks tend to generate higher returns than the market as a whole more often than not.  


Market Coverage

Small cap value covers the smallest 15% of the market.  It is further filtered to only contain the cheap half of the market sorted by book-to-market.



Note that “value” is somewhat subjective and can be determined by a variety of measures, so be sure to understand how your particular fund selects companies for the index.

While the total stock market also includes small caps, they represent only a small fraction by market weight.  So small cap funds are still quite helpful even when paired with a TSM fund.

Stocks on the site are labeled with either a blue or a red color.  Red is for domestic stocks and blue is for international stocks.  Note that the color may change for the exact same asset based on your home country.


Portfolios containing small cap value funds