Small Cap Value
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.
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.