By Ben Carlson, CFA
A Wealth of Common Sense
2020 was a weird year. One of the more surprising moves in 2020 to me was the fact that the Russell 2000® Index of small companies outperformed the S&P 500® Index. Yet, you’ll notice on the asset allocation quilt that small caps underperformed large caps by quite a bit.
The Russell 2000 outperformed the S&P SmallCap 600® Index by nearly 9%. This is getting into wonk territory, but the Russell 2000 holds more microcaps than the S&P 600. And, micro caps actually outperformed small caps, mid caps, and large caps in 2020.