World small funds invest in small-cap companies around the world. The data here focuses on developed market countries in the Europe, Pacific, and North America regions.
While world small is also included in World, because of the way World is weighted towards large caps some investors like to hold a bit of both to further increase their overall international diversification.
The calculators include two versions of World Small — All and ex-US. Because the US constitutes a large percentage of world stocks by market cap, many US investors use the ex-US version for international diversification.
Good data for world small is not available until 1982. Prior to that, I use a broad world index as a replacement asset. Since WOR is primarily influenced by large cap stocks, the fit is not great. Only small percentages will avoid the “estimated” tag in the calculators prior to 1982.